Wealthy 'think Rachel Reeves is doing worse job with economy than Liz Truss and regret voting Labour'

The figure is a record low, representing a huge drop from the 84 per cent recorded in August 2024 just after Labour had come to power and below the 67 per cent recorded in the aftermath of the Truss Mini-Budget in autumn 2022.

Of those questioned, 36 per cent said they voted for Labour at the election but two-thirds of that group now say they regret doing so, citing factors such changes to inheritance tax and the increase in National Insurance contributions for employers.

One respondent said the Labour Government will “raise any tax they can get away with”, with another adding “you just know that a Labour Government will increase the tax take where and when it can”. Furthermore, 47 per cent now believe tax rises are the single biggest threat to their wealth, behind only inflation (52 per cent) and up from 22 per cent six months ago.

More than a quarter (28 per cent) of those questioned claim they are now considering leaving the UK.

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 High Net Worth Individual 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 from the School of Economics at the University of Bristol who was involved with the study, 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 per cent 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.”​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

Chancellor Rachel Reeves said on Thursday it is “not possible to turn around more than a decade of poor economic performance in just a few months” as official figures showed GDP had increased 0.1 per cent in the final quarter of 2024.

She said: “We are doing what is necessary to bring stability back to the economy, reforming the economy, the planning system, regulation and pensions to encourage investment in our economy, which is the lifeblood of a successful economy.

“We need to go further and faster in doing that, to turn around our poor growth performance and to make working people better off.”