Confidence in the UK economy has fallen sharply among high-net-worth individuals, says Saltus, as taxation, business growth and cost of living pressures take their toll.
The Saltus Wealth Index report revealed that fewer than half (48%) of HNWIs have confidence in the UK economy, a fall from 84% in August 2024. It is the lowest level of confidence ever recorded by the Wealth Index report, which has been tracking HNWI’s confidence in the UK since 2021.
The picture varies significantly by region, with the East Midlands, South East, West Midlands and Scotland experiencing the most significant falls. Just four of the UK’s 11 nations and regions; Wales, Greater London, North East and Northern Ireland, maintain confidence above 50%.
Mike Stimpson, partner at Saltus, said: “The sharp declines highlight how concerns about taxation, business growth and cost of living pressures are taking their toll on the UK’s wealth creators.”
The report found HNWIs remain more confident in their own personal finances than the broader economy, although in some regions confidence is also starting to wane. Northern Ireland is now the least confident area in the UK, dropping from 93% in August to 73% today. The East of England also saw a notable fall in personal confidence from 95% to 82%.
Taxation remains a critical concern for HNWIs, Saltus said, with 83% expecting further tax increases in the next 12 months. A further key issue is the impact of VAT on private school fees, driving 42% of private school parents to consider making changes to their child’s schooling as a result.
Stimpson added: “Confidence is critical for growth and the fact that so many HNWIs feel uncertain about the prospects for the UK economy is concerning. High tax rates, policy uncertainty and personal finance pressures are all contributing to this downward trend.
“This lack of confidence creates real risk that investment and entrepreneurship could be stifled, which can only further exacerbate economic challenges.”
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