Commenting on the changes to VAT, National Insurance and Tax Credits announced in today’s Coalition Budget, Money Dashboard’s CEO Gavin Littlejohn says:

“These planned changes will have a big impact on the monthly income and outgoings of many families across the UK and the fear is that things are going to get worse still. But people shouldn’t panic.  Nor should they sink into a Greece-like gloom and ignore what is happening. Everyone needs to take positive action to stay in control of their finances.

"The start of next year is going to be the trickiest point for many when the VAT hike kicks in before basic rate tax payers see the benefit of increased personal allowances.  This comes right after the festive period when people tend to overspend.

“For consumers, it’s a case of reassessing income, tightening spending so they can afford the price hikes, setting a budget and then sticking to it. And I mean really sticking to it  - not just going through the motions.

“People have a habit of getting their finances in order then quickly losing track of things again. In the current climate, that’s a very risky strategy. Managing personal finances is not so far removed from managing a small business. So knowing how cash flow is going is vital at all times and planning ahead is key if consumers want to avoid financial disaster.”​