Stef’s market overview – December 2024

The financial world rarely stands still and 2025 promises more challenges. A key change has been the impact of the Motor Finance Commission disclosure rules. While these have made waves in the asset finance space, I don’t think we’ve seen the last of it. Several lenders are already adjusting their policies, legal documents and product terms outside of asset finance. It wouldn’t surprise me if we saw similar scrutiny applied to currently unregulated products like unsecured loans and invoice finance.

Closer to home, Rachel Reeves’ first post-election budget has shaken the market. With capital gains tax rates rising as of October – from 10% to 18% for the lower rate and 20% to 24% for the higher rate – we’re likely to see a rush of business sales and buyouts, especially in Q1. This kind of fiscal policy often drives short-term activity but could dampen longer-term growth prospects.

Looking across the Atlantic, the US is facing its own crossroads. A change in administration and the potential revival of Trump’s tariff plans could either boost the economy or cause a ripple effect here. As always, what happens in America doesn’t stay in America – we’ll be watching this space closely.

On a practical note, HMRC continues to take a hard line with businesses. Time-to-Pay arrangements are no longer optional if you want to keep lending options open.  It’s worth exploring now to avoid hiccups with lenders.

Here’s hoping for a steadier year ahead, but let’s not bank on it. Stay prepared, stay informed but, most importantly, we should all enjoy some well-earned downtime over the Christmas break.  It’s a good time for a breather – the real work resumes in January!