High Net Worth Individuals (HNWI) say their confidence in the economy has almost halved since Labour came to power, according to a new report by wealth manager Saltus Wealth.

The Saltus Wealth Index Report, based on a survey of 2,000 wealth individuals and carried out in January, found that confidence among high net worth individuals (HNWIs) in the UK has plummeted to a “record low.”

A series of tax rises, with threats of more to come, has knocked the confidence of HNW clients.

Confidence in the economy has fallen from 84%, when Labour first took office, to 48% now.

Other key findings from the study include:

• Two thirds (66%) of HNW clients who voted Labour at the general election, regret their decision
• 83% of HNWIs expect the Government to raise taxes further in the next 12 months
• The Saltus Wealth Index, which measures HNWI confidence on a scale of 0-100, has dropped to 58.2 - a 13% fall from August (66.9) and 10% lower than this time last year (64.4)

Saltus said the collapse in confidence comes against the backdrop of wider economic concerns, including a slowdown in the jobs market. EY is predicting only 1% GDP growth in the UK economy in 2025 although latest GDP figures out this week from the government showed an unexpected rise of 0.1%. Other studies have also suggest more confidence in the wider economy than the Saltus report.

According to the Saltus report 36% of HNW individuals voted for Labour in the last election compared to 26% who voted Conservative.

Saltus has been tracking HNWI confidence in the UK since 2021. The Index is a measure calculated in partnership with Dr Michael Peacey of the University of Bristol.

Saltus said the latest survey showed confidence has even fallen below the previous low of 59.5 recorded shortly after the notorious Liz Truss Budget in 2022.

A third of HNWIs (33%) say they feel ‘unconfident’, with those who say they are ‘very confident’ falling from 38% to just 19%, another all-time low. This is the highest level of negative sentiment ever recorded.

Some two thirds (66%) of the 36% of respondents who voted Labour at the last General Election said they now regret doing so. Some of the main reasons cited for the regret are: changes to Inheritance Tax (IHT) (18%), adding VAT to private school fees (18%), the impact on business (16%), changes to tax thresholds and pensions (16%), changes to the Winter Fuel Allowance (15%) and the  increase in Employer National Insurance (15%)

According to the survey, most HNWIs believe taxes will rise again and are concerned about the prospects for the economy.

The majority (83%) of HNWIs expect the Labour Government to raise taxes further in the next 12 months, with respondents predicting Capital Gains Tax (38%), Income Tax (37%) and IHT (35%) as the most likely to be increased.

The report also shows that HNWIs think high tax rates and a complex tax system remain the biggest barrier to wider economic growth with 43% citing this as the main issue, up from 23% before the last Budget.

Mike Stimpson, partner at wealth management firm Saltus, said: “The extent to which the confidence of high net worth individuals has collapsed demonstrates a missed opportunity for the new Government, who had high levels of support when they came to power and drove the highest levels of HNWI confidence in the UK economy we have ever recorded. Confidence is a critical component in growth, and the fact that this vitally important group of people - the wealth creators, employers and investors in the businesses of tomorrow - feel that the UK economy is not on the right track is a cause for concern.”

Dr Michael Peacey, senior lecturer, School of Economics, at the University of Bristol, said: “The decline in the Index reflects substantial shifts across several key measures and underscores a period of mounting apprehension among HNWIs about the UK’s economic prospects. There has also been a shift in how HNWIs feel about taxation in the UK, with anxieties about taxes rising further continuing to weigh heavily on HNWIs. The survey also suggests that tax changes are the primary reason that around 66% of HNWIs who voted Labour in 2024 now regret that decision.

“Looking ahead, it will be interesting to observe whether HNWIs follow through with their plans to react to the UK's economic challenges. Such actions could have significant implications for both the domestic economy and global perceptions of the UK as a hub for wealth creators.”

Saltus is a Financial Planning-focused wealth manager with more than 300 staff and manages over £7bn for clients.

The report is available here: Saltus Wealth Index Report

• The Saltus Wealth Index Report surveyed 2,000 UK respondents (aged 18+) who have £250k+ investable assets. The survey was carried out by Censuswide online in January 2025.