Four out of five financial services customers are either very concerned or somewhat concerned about tax increases being imposed by the new Labour government, according to a new survey.

Platform and SIPP provider AJ Bell found that 83% of its customers were worried about the spectre of further tax rises which could hit retirement savings.

That is despite Chancellor Rachel Reeves telling business leaders at November’s CBI conference that she would not be looking to repeat the tax-raising measures from her inaugural Budget in future fiscal events.

However the threat of potential tax rises could have an impact on consumer confidence, which has taken a huge knock in recent months due to Labour’s gloomy economic messaging, said AJ Bell.

It called on the government to deliver certainty in 2025 by committing to a Pensions Tax Lock and taking tax-free cash and pension tax relief off the table to avoid another period of damaging rumours that impact people’s long-term financial situation.

Laith Khalaf, head of investment analysis at AJ Bell, said: “Back in July, fresh off the back of a thumping election victory and majority in the House of Commons, Labour surely would have been expecting to enjoy a rather jubilant first Christmas recess since being back in government.

“As it is, Keir Starmer and Rachel Reeves now appear to be facing an economic task far greater than that which they set out during the heady days of the summer and risk being swallowed up by their own fiscal black hole.”

He said the government should pay close attention to the public’s perception of tax rises.

“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.”

He said that 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.

He said a Pensions Tax Lock 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.”

• Based on a survey of 1,530 AJ Bell customers, carried out online between 2 and 6 December 2024.