Huge blow for Rachel Reeves as grim data suggests worry โlooms large’ | Politics | News
Rachel Reeves faces grim data as confidence in Britain’s economic future plummets. The confidence of high net worth individuals (HNWIs) in the UK’s economy and their own wealth has fallen, according to a new survey.
The Saltus Wealth Index Report suggested the figure has dipped from 64.7 to 61.3. Overall confidence has decreased from 66% in the last report to 59%, and remains far below the 84% recorded before Labourโs first Budget, according to the wealth management firm.
In another blow to the Chancellor, confidence that London will remain Europe’s financial capital in the next decade dropped from 73% to 66% overall and to just 32% amongst over 65s, according to the data. Almost a quarter (23%) of HNWIs now describe themselves as “unconfident”, and this is three times higher (61%) amongst the over 65s.
HNWIs confidence in their own personal finances has fallen from 92% to 87%, back in line with this time last year (86%).
Mike Stimpson, partner at wealth management firm Saltus, said: โThe latest data show that the tentative recovery in confidence we saw in the second half of last year has not been sustained. While sentiment remains above the lows recorded earlier in 2025, concerns around taxation, economic growth and political decision making are once again weighing on HNWIs.
โUncertainty over future tax policy continues to loom large. Whether itโs Income Tax, Inheritance Tax or changes affecting businesses and employers, HNWIs are clearly worried about the direction of travel and what further measures may be introduced.
โThese individuals are investors, business owners and employers, and prolonged uncertainty risks dampening investment decisions at a time when the UK needs growth. Restoring confidence will require greater clarity and stability around tax and economic policy.โ
Dr Michael Peacey, senior lecturer, School of Economics, University of Bristol, added: โThe latest fall in the Index highlights just how fragile the recovery in confidence is proving to be. While sentiment improved temporarily in the latter part of last year, the data now suggest that underlying concerns have reasserted themselves, particularly around taxation and the wider economic outlook.
โThe fact confidence jumped up and has now fallen back down again in just six months underlines the extent to which uncertainty has become embedded. This volatility reflects a combination of domestic policy concerns and broader global risks, including inflation and interest rate uncertainty.
โFor confidence to recover more sustainably, HNWIs will need to see clearer signals on future tax policy and stronger evidence that economic conditions are stabilising.โ
