Huge blow for Rachel Reeves as grim information suggests fear ‘looms massive’ | Politics | News | EUROtoday

Rachel Reeves faces grim information as confidence in Britain’s financial future plummets. The confidence of excessive internet value people (HNWIs) within the UK’s financial system and their very own wealth has fallen, in response to a brand new survey.

The Saltus Wealth Index Report recommended the determine has dipped from 64.7 to 61.3. Overall confidence has decreased from 66% within the final report back to 59%, and stays far beneath the 84% recorded earlier than Labour’s first Budget, in response to the wealth administration agency.

In one other blow to the Chancellor, confidence that London will stay Europe’s monetary capital within the subsequent decade dropped from 73% to 66% general and to simply 32% amongst over 65s, in response to the info. Almost 1 / 4 (23%) of HNWIs now describe themselves as “unconfident”, and that is 3 times greater (61%) amongst the over 65s.

HNWIs confidence in their very own private funds has fallen from 92% to 87%, again according to this time final yr (86%).

Mike Stimpson, accomplice at wealth administration agency Saltus, mentioned: “The 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.

“Uncertainty over future tax policy continues to loom large. Whether it’s 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.

“These 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.”

Dr Michael Peacey, senior lecturer, School of Economics, University of Bristol, added: “The 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.

“The 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.

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