UK HNWI confidence falls as tax and growth concerns re-emerge

Confidence among high net worth individuals (HNWI) in the UK has fallen amid re-emerging concerns around growth and tax, the Saltus Wealth Index Report has shown.

The report, which is in its ninth edition, benchmarks HNWI sentiment in the UK, and revealed that confidence had weakened at the start of 2026 after showing signs of recovery mid-way through 2025.

The index stood at 61.3 in January 2026, down from 64.7 in August 2025, indicating that the rebound in confidence had not been sustained.

Although the index remained above the record low of 58.2 seen 12 months previously, it was well below its peak of 67.9 in February 2022.

Saltus noted that the fall in the index was primarily driven by declining confidence in the UK economy, with overall economic confidence decreasing from 66 per cent to 59 per cent over six months.

Nearly a quarter (23 per cent) of HNWIs described themselves as ‘unconfident’ in the UK economy, rising to 61 per cent of those aged over 65.

This age divide was also evident in views on the UK’s global competitiveness, with confidence that London would remain Europe’s financial capital over the next decade falling to 66 per cent overall, and to 32 per cent among over-65s.

Meanwhile, tax concerns continued to impact HNWI sentiment, as 45 per cent cited tax changes as a key risk to their personal wealth this year.

This was second only to inflation, cited by 51 per cent of HNWIs, and followed by uncertainty around interest rates, which rose to third (30 per cent).

Almost a quarter (22 per cent) felt that higher rates of income tax were unreasonably high, while 16 per cent believed inheritance tax (IHT) was excessive.

When asked about barriers to economic growth, HNWIs pointed to income tax, employer national insurance and corporation tax.

Confidence in personal finances also fell, with 87 per cent of HNWIs feeling confident about their own financial position, down from 92 per cent six months previously.

Older respondents were the least confident in their personal finances, with 75 per cent of over-65s expressing confidence compared to 93 per cent of those aged 25-44.

“The latest data shows that the tentative recovery in confidence we saw in the second half of last year has not been sustained,” commented Saltus partner, Mike Stimpson.

“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, IHT 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.”

University of Bristol School of Economics senior lecturer, Dr Michael Peacey, 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.”

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