High net worth individual confidence in the UK economy has risen since the arrival of the new Government, according to a new report.

The majority (84%) of high net worth investors are now confident in the UK economy’s prospects, according to the latest Saltus Wealth Index Report.

This is a rise of 6% from the previous index, and a record level since Saltus began publishing its index in October 2021.

The Saltus Wealth Index surveyed 2,000 people with assets of £250,000 or over.

Confidence increased further when respondents thought about their own wealth, with nine out of ten (91%) confident in their own financial standing.

There was a decrease in the number of high net worth inflation who considered inflation to be a risk. However, six in ten (60%) still considered inflation and interest rates to hold significant risks to their wealth (in comparison to the 71% considered them a risk in the previous Index report).

Many high net worth investors were delaying key life decisions due to the financial pressures they face, such as putting off starting a business (31%) or, for older investors their retirement (25%).

One of the specific pressure points identified was the rising cost of private education. The research suggests that 13% of HNWIs with children at private school will move them into state education in the next year, with significant numbers of children potentially having their education impacted in some other way due to the rapidly increasing cost of education. Just 15% of high net worth parents said the addition of VAT will have no impact on them or their children at all.

The proportion of respondents who felt their current tax burden declined from 64% to 58%.

Dr Michael Peacey, senior lecturer, school of economics at the University of Bristol, said he expects this number of continue to fall.

He said: “The upcoming Budget and the policies of the new Labour Government are clearly weighing heavily on the minds of many HNWIs. Although the most significant tax announcements are still pending (the survey was undertaken in the aftermath of the July General Election), the proportion of respondents who feel their current tax burden is appropriate has already declined from 64% to 58%. There is growing apprehension about potential changes to inheritance tax and capital gains tax, which are the two taxes which HNWIs already think are the least fair.”

• The Saltus Wealth Index is a barometer of HNWIs’ feelings about the UK economy and their personal finances.  It is a composite of seven measures assessed by Dr Michael Peacey of the University of Bristol. The research for the latest Index was carried out online during August 2023 by Censuswide.