Overall confidence in the UK economy has halved in less than six months among high-net worth individuals (HNWIs), according to the latest Wealth Index Report from Saltus.

Fewer than half (48%) of HNWIs now have confidence in the UK economy, a drop from 84% in August, which is the lowest level of confidence ever recorded by the wealth management firm.

Saltus surveyed 2,000 people with assets of £250,000 or more for its seventh edition of the report. The latest Index level has fallen by 13% to 58.2, from 66.9 when the Index was last published in August 2024, and down 10% from the 64.4 recorded a year ago.

This Index figure ranges between 0 and 100, with higher values describing higher confidence and fewer significant concerns with the UK economy and personal finances. Saltus said its latest Index figure represents a record low since the Saltus Wealth Index was first published, with the drop in confidence in the UK economy being the biggest driver of the fall.

Saltus’ report also highlighted that the Index figure has now fallen below the previous low of 59.5 recorded shortly after the Liz Truss mini-Budget in 2022.

Partner at Saltus, Mike Stimpson, 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 HNWI 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.”

Saltus calculates the Index measure in partnership with Dr Michael Peacey of the University of Bristol, and Peacey said the recent decline in the figure “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,” he added.

“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.”

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