Huge blow for Rachel Reeves as grim data suggests worry ‘looms large’ | Politics | News
Rachel Reeves faces bad data as confidence in Britain’s economic future dwindles. High-net-worth individuals (HNWIs) have less confidence in the UK economy and their own wealth, according to a new survey.
Saltus Wealth Index Report He claimed that the figure decreased from 64.7 to 61.3. According to the asset management firm, overall confidence fell to 59 per cent from 66 per cent in the last report, well below the 84 per cent recorded before Labour’s first budget.
In a further blow to the Chancellor, confidence that London will remain Europe’s financial capital over the next decade has fallen from 73% overall to 66%, and just 32% among over-65s, the data shows. Almost a quarter (23%) of affluent people now describe themselves as “insecure”, and the figure is three times higher for those aged over 65 (61%).
The confidence of wealthy people in their personal financial situation fell from 92% to 87%, in line with this time last year (86%).
Mike Stimpson, partner at asset management firm SaltusHe said: “The latest data suggests that the temporary confidence recovery we saw in the second half of last year is unlikely to be sustained. While sentiment remains above the lows recorded in early 2025, concerns about taxation, economic growth and political decision-making are once again putting pressure on the wealthy.
“There is growing uncertainty around future tax policy. Whether it is changes to Income Tax, Inheritance Tax or changes affecting businesses and employers, HNWIs are clearly concerned about the direction of travel and what other measures may be taken.”
“These are investors, business owners and employers, and they are the risks of prolonged uncertainty negatively impacting investment decisions at a time when the UK needs growth. Restoring confidence will require greater clarity and stability on tax and economic policy.”
Dr Michael Peacey, Senior Lecturer in the School of Economics at the University of Bristol, added: “The latest decline in the index highlights how fragile the confidence recovery is. While sentiment temporarily improved in the second half of last year, data now shows fundamental concerns are re-emerging, particularly around taxation and the wider economic outlook.”
“The fact that confidence has risen in just six months and is now falling again underscores the extent to which uncertainty has become entrenched. This volatility reflects a combination of domestic policy concerns and broader global risks, including inflation and interest rate uncertainty.”
“For confidence to recover more sustainably, wealthy individuals will need to see clearer signals on future tax policy and stronger evidence that economic conditions are stabilising.”
