The Saltus Wealth Index Report shows that while there was an improvement in sentiment, it is way behind where attitudes stood before last year's annual UK Budget.

A biannual measure of affluent individuals’ confidence in the UK economy and their own wealth has risen. However, it is far off from where it was before the 31 October government Budget of 2024, figures show. 

The Saltus Wealth Index Report – now in its eighth edition and produced in partnership with Dr Michael Peacey of the University of Bristol – takes the pulse of 2,000 people with investable assets of £250,000 ($324,200) or more.

The latest Wealth Index now stands at 64.7, up from the record low in February this year, when it stood at 58.2. While this reflects strong market performance following the souring of mood after the 2 April “Liberation Day” Trump tariff announcement, it still sits well below the high of 67.7 recorded in February 2022.

Today, two thirds (66 per cent) of survey respondents say they are confident in the UK’s economic outlook. Today’s confidence levels are down on the 84 per cent recorded a year ago, after the Labour government came to power but before its first Budget. One in four (24 per cent) of those in the survey cite “the economy going into recession” as their biggest worry.

The data also shows that 78 per cent of respondents expect tax rises within the next 12 months and almost half (46 per cent) see tax changes as ‘the biggest single risk to their wealth’ – second only to inflation (58 per cent).

Four in 10 (40 per cent) say they anticipate higher levels of income tax, despite the fact that one in four (24 per cent) believe that higher rates of income tax are already unreasonably high and a key barrier to economic growth. Employers’ National Insurance and reduced pension contribution relief are also expected targets, with 40 per cent saying they think all three could see reforms in the next 12 months.

Most respondents also think that capital gains tax will be targeted – either with a rise (46 per cent) or further rate freezes (34 per cent) – and a similar number expect inheritance tax to rise (36 per cent) or for the threshold at which it is paid to remain frozen (47 per cent). One in five (17 per cent) say they think IHT is already too high, 30 per cent think it should be abolished and 15 per cent think the threshold should be raised to around £600,000, nearly double the current £325,000.

“Confidence in the UK economy is showing a degree of recovery amongst high net worth individuals, up from the lows we saw in January, but this is tempered by concerns over future tax changes and what the Labour government will do next,” Mike Stimpson, partner at wealth management firm Saltus, said.