Autumn Budget 2024: Generating consistent real returns has never been more important

By Graham Wood, Chief Financial Officer

As the dust settles, I remain in two minds about last week’s budget.

On the one hand, I commend the Chancellor for her ambition, of not shying away from the difficult decisions needed to address the underinvestment in our public services, and importantly setting the UK back on a path to growth.

That said, I cannot help but feel that by committing not to increase income tax, employee national insurance, corporation tax or VAT, this budget is likely to have unintended consequences for those who can least afford it; particularly low income workers, small business owners and farmers.

What is clear, is that the size of the state and the UK’s debt burden will continue to grow, taxes will remain high (and may go higher still) and inflationary pressures will persist, resulting in higher borrowing costs for individuals, businesses and UK PLC, eroding spending power and wealth in the process.

The ability to generate consistent real returns has never been more important. However, with gilt yields expected to remain elevated and global stock markets trading at all time highs, it has also never been more challenging. With financial assets looking fully priced, investors are understandably turning their attention to the returns offered by investing in real assets such as real estate.

At Barwood, we pride ourselves on consistently delivering strong real returns to our investors across the cycle, by creating and adding value to real assets through planning, development, sustainability initiatives and proactive asset management. Our real estate funds and products cater to a range of risk appetites, investment horizons and goals, and are suitable for sophisticated investors looking to diversify their portfolios, and benefit from the anticipated recovery in UK real estate.