Over four in five (83%) AJ Bell customers have stated that they are either very or somewhat concerned about tax increases from the new Labour Government in 2025.

The results came from the investment firm’s latest survey of 1,530 customers.

AJ Bell highlighted that the findings come despite the Chancellor, Rachel Reeves, telling business leaders that she would not be looking to repeat the tax raising measures made in her inaugural Budget in future.

The investment platform commented that any indication of further tax rises would "likely impact on consumer confidence", which has taken a knock in recent months.

Head of investment analysis at AJ Bell, Laith Khalaf, said: "Over eight in 10 of AJ Bell customers surveyed in December are concerned that the government will continue to raise taxes in 2025.

"The economic tightrope that Reeves has been attempting to walk over the past six months is undoubtedly tough, and she is in no enviable position. But if Labour is ever going to realise its central ambition of turbocharging economic growth, it needs to ensure the British public feel secure enough about their personal finances to start spending and investing.

"This is particularly pressing in light of recent revisions to GDP data from the ONS, which revealed a more stagnant picture for growth than previously thought, with zero growth recorded for Q3 of 2024."

AJ Bell has therefore stated that the Government should aim to "deliver certainty" in the new year by committing to a pension tax lock and taking tax-free cash and pension tax relief off the table to "avoid another period of damaging rumours" that impact long-term financial situations.

Khalaf concluded: "The full economic effect of the measures announced in the Budget remain to be seen, but we already know that there was considerable damage to people’s personal finances spurred by the press briefing and speculation ahead of Budget day, especially in the sphere of pensions where many people across different providers accessed their pension tax-free cash and increased their pension contributions.

"This being the case, a good place to start would be for the government to commit to a pensions tax lock for the remainder of this Parliament, which would take changes to pensions taxation including tax-free cash and tax relief on pension contributions out of consideration at future fiscal events. Until the government provides some reassurance and stability in terms of the tax on long-term savings, they can’t expect retirement savings in the UK to flourish."

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