Big shock for Rachel Reeves: grim data shows concern is ‘huge’ Politics news

Rachel Reeves faces grim statistics as confidence in Britain’s economic future plunges.

High net worth individuals’ (HNWI) confidence in the UK economy and their wealth has fallen, according to a new survey.

saltus wealth index report It was suggested that the figure had fallen from 64.7 to 61. 3. Overall confidence has fallen to 59% from 66% at the last report, according to the wealth management firm, and is well below the 84% recorded before Labour’s first budget.

In another blow to the Chancellor, confidence that London will remain Europe’s financial capital over the next decade fell from 73% to 66% overall and to just 32% among people over 65, according to the figures. Nearly a quarter (23%) of HNWIs now describe themselves as “distrustful”, and this is three times higher (61%) among those over 65.

HNWIs’ confidence in their personal finances has fallen from 92% to 87%, which is in line with the same time last year (86%).

Mike Stimpson, partner at wealth management firm Saltus, said, “The latest data suggests that the temporary improvement in confidence we saw in the second half of last year has not been sustained. While sentiment remains above the lows previously recorded in 2025, concerns about taxation, economic growth and political decision-making are once again weighing on HNWIs.

“There remains uncertainty over future tax policy. Whether it is income tax, inheritance tax or changes affecting businesses and employers, HNWIs are clearly concerned about the direction of travel and what further measures may be introduced.

“These individuals are investors, business owners and employers, and the risks of prolonged uncertainty are impacting investment decisions at a time when the UK needs growth. Restoring confidence will require greater clarity and stability around tax and economic policy.”

Dr Michael PC, senior lecturer at the School of Economics at the University of Bristol, said: “The latest fall in the index highlights how fragile the recovery in confidence is proving to be. While sentiment temporarily improved in the latter half of last year, the data now shows that underlying concerns have risen again, particularly around taxation and the macroeconomic outlook.

“The fact that confidence rose and has now fallen 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.

“To recover confidence more sustainably, HNWIs will need to see clear signals on future tax policy and strong evidence that economic conditions are stabilising.”

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