The Chancellor is going through grim information from the UK’s wealthy as confidence in Britain’s economic system plummets.
The Chancellor has been hindering the UK’s financial development, critics declare (Picture: Getty)
Rachel Reeves faces grim information as confidence in Britain’s financial future plummets. The boldness of excessive internet price people (HNWIs) within the UK’s economic system and their very own wealth has fallen, in keeping with a brand new survey.
The Saltus Wealth Index Report instructed the determine has dipped from 64.7 to 61.3. General confidence has decreased from 66% within the final report back to 59%, and stays far beneath the 84% recorded earlier than Labour’s first Finances, in keeping with the wealth administration agency.
In one other blow to the Chancellor, confidence that London will stay Europe’s monetary capital within the subsequent decade dropped from 73% to 66% general and to simply 32% amongst over 65s, in keeping with the info. Virtually 1 / 4 (23%) of HNWIs now describe themselves as “unconfident”, and that is 3 times greater (61%) amongst the over 65s.
HNWIs confidence in their very own private funds has fallen from 92% to 87%, again consistent with this time final yr (86%).
Mike Stimpson, companion at wealth administration agency Saltus, mentioned: “The newest information present that the tentative restoration in confidence we noticed within the second half of final yr has not been sustained. Whereas sentiment stays above the lows recorded earlier in 2025, considerations round taxation, financial development and political resolution making are as soon as once more weighing on HNWIs.
“Uncertainty over future tax coverage continues to loom giant. Whether or not it’s Revenue Tax, Inheritance Tax or adjustments affecting companies and employers, HNWIs are clearly apprehensive in regards to the route of journey and what additional measures could also be launched.
“These people are buyers, enterprise homeowners and employers, and extended uncertainty dangers dampening funding selections at a time when the UK wants development. Restoring confidence would require larger readability and stability round tax and financial coverage.”
The fates of Sir Keir Starmer and Ms Reeves are mentioned to be intertwined (Picture: Getty)
Dr Michael Peacey, senior lecturer, Faculty of Economics, College of Bristol, added: “The newest fall within the Index highlights simply how fragile the restoration in confidence is proving to be. Whereas sentiment improved briefly within the latter a part of final yr, the info now counsel that underlying considerations have reasserted themselves, notably round taxation and the broader financial outlook.
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“The actual fact confidence jumped up and has now fallen again down once more in simply six months underlines the extent to which uncertainty has grow to be embedded. This volatility displays a mixture of home coverage considerations and broader international dangers, together with inflation and rate of interest uncertainty.
“For confidence to get well extra sustainably, HNWIs might want to see clearer alerts on future tax coverage and stronger proof that financial situations are stabilising.”
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