The government appears to have four key objectives ahead of its first Budget next week:

• Cover the £22bn black hole it has uncovered
• Make the UK pension system less or non-dependent upon state support
• Encourage the UK population to become more financially self-reliant
• Encourage investment in UK business

With these in mind, here are my big four predictions for the day.

1. Pension scheme to provide a side-car cash account

According to the Financial Conduct Authority, one in three UK adults have either no savings or less than £1,000 accessible. This means they are ill-equipped to respond to cashflow shocks, such as an unexpected bill.

Workplace pension provider Nest has, for some time, been running its side-car initiative, combining a savings account with its pension scheme. This creates three benefits the broader population could also benefit from:

• Budgeting and cashflow management
• Building emergency savings
• Working towards a near-term savings goal

This appears to have been a great success, so it would be sensible to extend the benefit to the 12 million-plus pension holders in the accumulation phase.

2. Make better use of tax-free cash allowance 

Most of us can take tax-free cash equivalent to 25% of the value of our accumulated pension savings, up to a maximum of £268,275.

Ultimately, this allowance encourages one in four pounds saved tax efficiently to fund retirement to instead be spent on whatever the owner likes. This gives the UK economy and HM Revenue and Customs (HMRC) a boost, as the likes of cars, kitchens and holidays are often purchased.

That said, taking the cash results in a smaller income for the owner for the rest of their life, and potentially their dependents too. This makes both more likely to become reliant upon the state to financially support them later in life.

Could the allowance be restructured to encourage saving and for the average retiree to see more value in boosting their income in retirement than taking the tax-free cash?

This could be done by retaining the 25% allowance but setting a threshold at which it becomes available. A minimum level of secure income required before tax-free cash becomes an option.

We can use the Pension and Lifetime Savings Association (PLSA) annual Retirement Living Standards report to help us set the threshold. This states a minimum level of income required in retirement – £14,400 for a single person in 2024/25, excluding rent/mortgage costs.

With the state pension currently providing £11,502, this leaves those without an alternative income source some £2,900 below the PLSA minimum level. To put it another way, the state provides only 80% of the income needed.

To buy a secure inflation-linked lifetime income to make up the shortfall would currently require around £70,000 for a single person, non-smoker, in good health.

For someone on a UK average salary of £35,000, this would take about 15 years to accumulate. Bearing in mind the average working lifetime is 45-50 years and we have auto-enrolment with a compulsory 8% contribution rate, this seems realistic.

Looking at this from a consumer’s perspective, hardly anyone knows how much they need to save. The £70,000, therefore, becomes a minimum goal, while also making it clear they will be rewarded for exceeding it through the 25% tax-free cash allowance.

This incentive works just as well for the self-employed as it does the employed. This is important, because, currently, some four million self-employed individuals are not saving for their retirement.

Further consideration needs to be given to how the system would work for:

• Couples, who, according to PLSA, require a minimum income of £22,400.
• Those with protected characteristics as defined by the Equality Act 2010 – i.e. women and the disabled. This is because they are more likely to be earning lower amounts and therefore may find the £70,000 parameter the hardest to reach.

3. Replacing tax relief on pension contributions with a flat rate top-up

Currently, savers can benefit from tax relief on their pension contributions at their highest marginal income tax rate.

There are two ways this is administered: relief-at-source (RAS) and net pay. Neither works for every employee, so could create claims of indirect discrimination brought under the Equality Act.

For example, non-taxpayers currently saving in a scheme that uses the net-pay system do not receive the relief to which they are entitled.

HMRC will start inviting those affected to receive correction payments from April 2025 – however, only for contributions made in 2024/25 and using a system fraudsters will recognise. Crucially, these payments will have limited appeal as they are relatively small in value, will be subject to income tax and, for those in receipt of Universal Credit, a further 55% clawback.

Looking at the bigger picture, tax relief currently costs the government somewhere in the region of £60bn. According to the Office for National Statistics, most of this value goes to higher and additional rate taxpayers.

This means removing the additional benefit for higher and additional rate taxpayers could save more than £30bn. Which is clearly more than sufficient to cover the £22bn black hole.

Replacing RAS and net pay with a flat rate of at least 20% will also remove the connection to the tax system.

From a consumer’s perspective, most savers will experience no difference. All non-taxpayers will receive the benefit they are entitled to. Higher and additional rate taxpayers will receive less, but, importantly, the same as everyone else as a percentage of their salary.

Further consideration needs to be given to defined benefit pension schemes. This is because they are dependent upon higher earners attracting the additional tax relief to meet their future liabilities.

However, this change may also create the environment in which the new style of pension, called collective defined contribution, can become a potentially viable alternative.

The decision for our new government is whether to continue with a complicated and expensive system that fosters inequality or move to a cheaper one that treats everyone the same.

4. Simplify Isas and encourage investment in the UK

Today, we can each place £20,000 per annum into an Isa and benefit from tax-free income and growth.

However, a large percentage of the £750bn in Isas is held in cash-based assets and international funds. This means they are benefitting from the UK tax system, while contributing very little to the economy.

We report on 775 different Isas, distributed through five different types of Isa. With so many options, the decision to drop the idea of a British Isa is welcomed.

That said, our new government still has the desire for invested wealth that attracts UK tax benefits to be benefitting the UK.

Therefore, I suspect Isas may be replaced or at least given a makeover, such as introducing a compulsory 20% investment weighting towards UK registered equities and UK-based infrastructure projects. Changes that are simple to understand, incentivise regular savings and ultimately drive investment in the UK.

While I would like to see the end of different types of Isa, within their replacement I can see value in offering cash bonuses for those saving to:

• Buy their first home
• Buy insurance against care costs
• Make regular income payments to charity

Richard Hulbert is insight analyst at Defaqto

A HOMEOWNER was slapped with a huge £4,000 bill after discovering an invasive plant had spread across her garden.

The costly plant, which’s not to be mistaken with Japanese knotweed, was completely missed by her surveyors.

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Leah Jones bought her terraced home unaware that the bamboo plant growing in her back garden was a ticking time bomb.

It had spread underground, crisscrossing beneath her patio and artificial lawn, with new shoots emerging metres away.

The bamboo plant has now left Leah with a massive bill just months after moving in.

Leah said: “When we bought the house, we had no idea of the problems bamboo can cause, and our surveyor didn’t mention it.

“It’s going to cost us several thousand pounds to have it removed next month, and the disruption to the garden will be huge.

“Knowing what I know now, I wouldn’t buy a property with bamboo – I’d insist the seller have it removed first.”

Leah’s situation appears to be a growing issue for UK homeowners – the hidden threat of bamboo infestations.

Unlike Japanese knotweed, which is subject to strict legal requirements during property sales, there is no obligation for sellers to declare the presence of bamboo.

This means home buyers like Leah are often left to deal with the problem themselves after moving in.

Bamboo can be extremely invasive and damaging.

The plant spreads through long underground rhizomes that can travel up to 10 metres, potentially causing harm to lawns, patios, and even neighbouring properties.

Plant specialist and Environet Director, Emily Grant, said: “Nobody wants to inherit a stressful and expensive issue when they buy a property.

“This is frequently happening with bamboo as there is no legal framework to protect buyers, as there is for Japanese knotweed.”

Experts claim to have seen cases where homeowners have “barely unpacked their bags” before discovering the bamboo infestation in their new home.

Emily added: “In addition to potential damage to their own property and garden, buyers need to consider the risk of a legal case from a neighbour if the bamboo encroaches into their property.”

Because Leah was unaware of the infestation, by the time the family noticed the shoots spreading, it had already taken over much of the garden.

The removal process will require digging up large sections of the patio and lawn, as well as excavating the root systems to prevent the bamboo from returning.

Leah’s fear is that if left untreated, it could encroach into neighbouring gardens, potentially sparking legal disputes.

With 8% of UK homes now estimated to be affected by bamboo, and a 50% rise in bamboo removal enquiries related to property sales in the last six months, awareness is starting to grow.

But many home buyers are still caught off guard, like Leah, by the extent of the damage it can cause.

It typically costs around £3,500 +VAT to remove bamboo from a residential property.

As she prepares to have her garden excavated, Leah hopes that other home buyers will be more vigilant and avoid being left with a nasty – and expensive – surprise.

She said: “I hope by raising awareness we can prevent this from happening to other home buyers who may have no idea what they’re taking on.”

Home buyers should be aware of the plant and take necessary precautions, ensuring thorough checks are made before completing a purchase, as the consequences of ignoring it can be both financially and structurally devastating.

It comes as another Brit has revealed her bamboo “nightmare” after a neighbour has insisted she pour diesel over her plants. 

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TRAINLINE has issued a huge warning to passengers that must be followed or could risk being hit with £100 fine.

The digital platform, which allows customers to book travel online, is reminding users they can not use their Railcard on every train journey.

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A railcard is a discount card for young and retired people which helps them shave around a third off their travel costs.

However, Trainline said some Railcards can only be used on fares that are above a certain price, at a certain time. 

While others have specific restrictions on the times you can travel. 

For example, if you’re travelling between 4:30am and 10am, some Railcards can only be used on fares that cost £12 or more.

If you do not adhere to these rules you could face a £100 fine for not complying with the ticket rules.

A Trainline spokesperson told The Sun it is changing how it presents information to make the rules more easy for customers to understand.

They said: “While we have always applied railcards correctly and presented the right fees to our customers, recent events highlighted a sense of confusion for passengers around rail industry terms and conditions.

“And so, we have changed how we present this information in the booking flow, as well as adding information to our website, to give customers clarity when buying their tickets”

Travel cards have been in the spotlight recently after it was reported that Northern Rail passengers could be entitled to compensation.

The travel giant said it was dropping cases of people accused of wrongly using a 16-25 railcard to get discounted travel at the wrong time of the day, The Telegraph reported.

It was said that Northen was breaking a rule whereby passengers with a railcard travelling on the wrong train must be offered the chance to pay back the difference “on the spot”.

Instead, the travel giant was accused of whacking travellers with a find on the spot

A Northern Rail spokesperson told the outlet: “We are withdrawing any live cases and will also look to review anyone who has been prosecuted previously on this specific issue”.

The Sun has contacted Northern Rail for a comment,

How to avoid a fine when using your Railcard

Railcards are available to a number of different age groups, including students, young professionals and the elderly.

You have to pay for the card with the price usually working out at around £30 for a year or £70 for three years.

A number of different companies issue Railcards, such as Trainline which is the official retailer of Railcards by National Rail.

Trainpal is another option but the price remains the same.

Using the discount can help you save around a third on your travel costs.

However, it is important to note that you could be fined if you travel during peak time or pay a certain amount for your ticket.

This is especially important when you buy Anytime tickets or other flexible tickets.

For example, if you travel on a train before 10am and have used your Railcard to buy your ticket, make sure you didn’t pay less than £12.

This is because the ticket won’t be valid before 10am – even though it’s an Anytime ticket.

To avoid fines make sure that if you end up travelling on an earlier train, make sure to double-check any restrictions. 

You can read about the restrictions surrounding Railcards by visiting, https://www.railcard.co.uk/help/railcard-terms-and-conditions//

GREGGS is not a name you associate with fine dining or fancy booze.

However, as I tucked into a sausage roll covered in hot chilli sausage while drinking a £95 glass of champagne, I was surprised by how well they went together.

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Yesterday, I visited the chain’s new champagne bar pop-up in Newcastle.

The plush bar inside historic Fenwick’s Food Hall is opening to customers today and closing on December 31.

Shoppers will be able to get their hands on an assortment of savoury snacks including bakes, sausage rolls and melts with posh sauces, as well as cocktails based on classic sweet treats.

Foodies can even pair the savoury bites with some seriously posh champagne and Prosecco, with both small glasses and whole bottles on offer.

Prices for a glass start at £10 and range up to £75 while bottles start from £37 and go up to a whopping £425.

At the pre-launch of the champagne bar, I got a first try of some of the new Haute cuisine and bubbly on offer.

The space has been designed in the Art Nouveau style with a marble c-shaped bar which is scattered with crystal bells to call for attention.

A grand three-tiered glass display features a range of spirits too, with workers dressed in smart suit trousers and bow ties.

As I sat down, everything told me I was somewhere more akin to an underground club in 1900s Paris than your everyday Greggs branch.

I tried one starter, one main, two champagnes and a cocktail.

First up was the £4 sausage roll with hot honey chilli sauce which came with bits of chopped fresh chilli inside.

I never would never think of combining sausage roll with a sweet chilli sauce, but it was surprisingly better than predicted.

The sticky and tart sauce blended with the salty pork sausage meat well and the fresh chilli added a subtle kick.

That said, if you gave me the option of choosing between this and having a sausage roll with tomato ketchup, I’d choose ketchup every time as the flavours just pair better.

For the main option I tried the chicken bake with katsu curry sauce and pickled cucumber, which costs £4.75.

If I’m not buying a sausage, bean and cheese melt at Greggs, a classic chicken bake is my next choice, but I was sceptical the trio of flavours would work together.

I must admit I was wrong though, and the umami flavour from the katsu sauce paired really nicely with the creamy white sauce from the chicken bake.

That, combined with the freshness of the pickled cucumber, and the trio of flavours made for a really balanced bite.

The two champagnes I had were the Bollinger Rosé Brut, which is £22 per glass or £95 a bottle, and the Perrier-Jouët Belle Epoque, on sale for £55 a glass or £295 a bottle.

The first was light, citrusy and really refreshing, with a subtle hint of apple in there for a bit of tang.

The Perrier was a bit more tart and aromatic, but I was less of a fan of this one.

I loved yum yums as a kid so I was buzzing to try to the yum yum twist cocktail next.

It combines rum with a yum yum flavoured soft drink and icing sugar around the rim of the glass and costs £11.

One sip and I was dragged back in time to being a school kid and tucking into a whole bag of the sweet pastries.

What’s on the menu?

Greggs’ champagne bar at Fenwick will be open daily from today, 11.30am to 6pm Monday to Saturday, excluding Thursdays, when it will shut at 7pm.

On Sundays, the bar will open at 11.30am and close at 4pm.

Shoppers keen to head down have to reserve ahead via www.fenwick.co.uk/events/restaurants/bistro-greggs-at-fenwick/bistro-greggs-at-fenwick

But what is actually on the menu crafted by Fenwick executive head chef Mark Reid? This is the full list with prices:

• Sausage Roll with Hot Honey Chilli Sauce – £4
• Vegan Sausage Roll with Harissa Coconut Yoghurt – £4
• Cheese & Onion Bake with Romesco Sauce & Almonds – £4.50
• Steak Bake with Peppercorn Aioli – £4.95
• Chicken Bake with Katsu Curry Sauce & Pickled Cucumber – £4.75
• Sausage, Bean & Cheese Melt with Bloody Mary Ketchup – £4.50
• Prosecco – Ca di Alte – £10 for glass or £37 for bottle
• Rosé Prosecco – Ca di Alte – £12 for glass or £42 for bottle
• Gremillet Brut Champagne – £15 for glass or £55 for bottle
• Bollinger Special Cuvée Brut – £18 for glass or £80 for bottle
• Bollinger Rosé Brut – £22 for glass or £95 for bottle
• Laurent Perrier Rosé – £25 for glass or £125 for bottle
• Rare Champagne Millesime – £40 for glass or £210 for bottle
• Perrier-Jouët Belle Epoque – £55 for glass or £295 for bottle
• Louis Roederer Cristal – £75 for glass or £425 for bottle
• “Pink Jammie Fizz” cocktail – £11
• Yum Yum Twist cocktail – £11
• Cream Eclair cocktail – £12
• Non-Alcoholic Peach Melba cocktail – £7

Greggs loved to cause a buzz with its pop-up events – but it’s unlikely to be rolled out more widely.

If you live nearby then it would be easy to make the journey and pop in.

But will we soon see Greggs on posh menus? Unlikely.

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A £250MILLION fund set up to boost women in business and backed by the Chancellor Rachel Reeves has been snubbed by City institutions.

Only Barclays, asset manager M&G, bank Morgan Stanley, Visa and the British Business Bank have so far pledged support.

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Among those to say “No” to the Invest in Women Taskforce are NatWest, HSBC, Bank of America and Legal and General.

Aviva, which is headed by Amanda Blanc, is yet to commit, it is believed.

It follows research showing female founders attract under 2% of venture capital funding which is often key to get firms growing.

The Taskforce, cochaired by Barclays’ head of business banking Hannah Bernard and Brit entrepreneur Debbie Wosskow, was set up by the last government.

Reeves backs it and says the economy could be boosted by £250billion if women were able to start and scale businesses at the same rate as men.

She is facing calls to get pension funds to direct assets into femaleled companies and has been warned that rises to capital gains tax will blunt female entrepreneurs’ ambitions.

Emma Jones, of business-to-business service Enterprise Nation, said: “If the end game is no longer the prospect it once was, women may not see entrepreneurship as a career path.

“That would be a massive loss to the economy.”

Ms Wosskow said: “We are set on our mission of making the UK the best place in the world to be a female entrepreneur.

“We urge as many banks and investors as possible to join us.

“Everyone agrees that it is important that the industry comes together to solve this issue.”

ADDISON LEE SOLD FOR £269M

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THE UK’s biggest minicab operator, Addison Lee, has been sold by its founder’s son to a Singaporean taxi firm.

Cityfleet Networks, owned by Singapore’s Comfortdelgro, paid £269million.

The business has been sold by shareholders Cheyne Capital and Liam Griffin, son of founder John Griffin, who took back control of the business in 2020 to steer the firm through the pandemic.

Multi-millionaire John, who left school without qualifications, started the business with one car in 1975.

Liam last year attacked previous private equity owners, Carlye, for “making a hash” of plans to expand Addison Lee across regional cities. He said ComfortDelGro “share our philosophy, vision and ambition”.

Addison Lee transports around seven million people across the capital each year and has 7,500 drivers.

A LATTE TO PAY

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Starbucks has promised to shake up its menu and prices after customers became sick of its pricey pumpkin spice lattes.

The cafe giant, backed by celebrities such as singer Ed Sheeran, above, suffered a sales slump forcing it to scrap profit guidance for the year.

Starbucks said that global sales fell by seven per cent in the last three months as customers balked at the price of its drinks and the time it takes to queue at busy stores.

New boss Brian Niccol said the business would “simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit”.

It came as Coca-Cola yesterday reported a 1% sales slump.

LLOYDS BUDGET STABILITY ALERT

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LLOYDS, the UK’s biggest mortgage lender, has warned banks need a “competitive, stable” tax regime amid reports the Chancellor is planning a Budget tax raid.

Finance chief William Chalmers yesterday said the bank would welcome a Budget that promoted a “pro-growth agenda” and highlighted that Lloyds is already one of the UK’s biggest taxpayers.

He added: “It is also important to have a competitive, stable tax regime to encourage investment and lending.”

Lloyds made £1.8billion in profits in the third quarter of 2024, 2% lower than last year.

McD’S IN PICKLE

MORE than £10billion has been wiped off the value of McDonald’s after its quarter pounders were blamed for a deadly E.Coli outbreak.

The fast-food giant has been implicated in 49 cases in the US, which has resulted in 10 hospitalisations and one death.

Shares in the firm fell by as much as 15% in two days after the US Centers for Disease Control confirmed a link to its onions.

Charu Chanana, chief investment strategist at SAXO, said: “McDonald’s revenues and earnings could face pressure.”

M IN TAX FEAR

MARKS & SPENCER boss Stuart Machin says firms will find it harder to create jobs if, as reported, employers’ national insurance contributions rise in the Budget.

Mr Machin said any jump, when coupled with other taxes that hit retailers, such as fuel duty, would increase the difficulty.

He said: “This Government was elected to promote a growth agenda, but what I’ve seen and heard so far doesn’t add up to a coherent growth narrative.”

Marks & Spencer has around 65,000 staff.

A £111MILLION bid for luxury handbag maker Mulberry has been dropped by Mike Ashley‘s Frasers Group. The decision comes one day after Mulberry said the offer was “untenable” without the backing of biggest shareholder Christina Ong.

BUILDERS AXE JOBS

HOUSEBUILDERS Barratt and Redrow are cutting 800 jobs just weeks after completing their £2.5billion merger.

The enlarged company said it was looking to make £90million of cost savings from efficiencies.

Staff affected will be in senior management, back office and central support roles, rather than development or sales.

The industry is already grappling with a shortage of construction workers.