The latest Saltus Wealth Index Report shows that the rebound in confidence among UK high net worth individuals in the UK economy and their own wealth has not been sustained.

After showing signs of recovery in the second half of last year, confidence among UK high net worth individuals (HNWIs) in the UK economy and their own wealth has weakened over the past six months, according to the latest Saltus Index Report published yesterday.

The biannual Saltus Wealth Index Report – now in its ninth edition and supported by Dr Michael Peacey of the University of Bristol – is the benchmark measure of HNWI sentiment in the UK, tracking the views of 2,000 individuals with investable assets of £250,000 ($338,000) or more. It was carried out online in January 2026.

The latest Index stands at 61.3, down from 64.7 six months ago, confirming that the rebound in confidence seen in September has not been sustained.

While the index is still above the record low of 58.2 recorded in February 2025, it is well below the peak of 67.9 seen in February 2022, highlighting the fragile nature of the recovery.

The fall in the index has been caused by declining confidence in the UK economy. Overall economic confidence has slipped from 66 per cent to 59 per cent, widening the gap with the 84 per cent recorded ahead of the Labour Government’s first budget in August 2024.

Almost a quarter of HNWIs describe themselves as unconfident in the UK economy, rising among older respondents, where 61 per cent of over 65s say they lack confidence. This age divide is also reflected in views on the UK’s global competitiveness, with confidence that London will remain Europe’s financial capital over the next decade falling to 66 per cent overall, and to 32 per cent among over 65s.

Tax and growth concerns
Concerns about taxation continue to weigh heavily on sentiment, the index reveals. Nearly half of HNWIs cite tax changes as a key risk to their personal wealth in 2026, second only to inflation, while uncertainty on interest rates has risen to third place.

Last year’s Autumn budget saw a freeze in income tax thresholds, increased taxes on dividend income, and a levy on high-value homes in a bid to raise money to close a gap in public accounts.

Increased rates of income tax at 40 per cent and 45 per cent are viewed as unreasonably high by 22 per cent of respondents, the index shows, while 16 per cent said inheritance tax is excessive. “We are seeing younger clients starting to focus on inheritance tax, even pre-retirement, with trusts often being a key consideration on their minds, especially where minors are involved," Henrietta Grimston, chartered financial planner at Saltus, said. "This is a marked change from a few years ago when often trusts were perceived as too complex by HNWIs and preference swayed towards other options. Care needs to be taken here that any early inheritance tax planning does not derail meeting future expenses.” 

When asked about barriers to economic growth, HNWIs point to income tax, employer National Insurance and corporation tax, reinforcing the view that taxation on earnings and employment is acting as a brake on growth.

Confidence in personal finances weakens
Confidence in personal finances has also edged lower. While 87 per cent of HNWIs still feel confident about their own financial position, this is down from 92 per cent six months ago, returning sentiment to levels seen this time last year. Older respondents remain the least confident, with 75 per cent of over 65s expressing confidence compared with 93 cent of those aged between 25 and 44.

Others highlighted that their decision to send their children to private school was adding to their financial difficulties. Sixty eight per cent said they plan to sacrifice other luxuries to continue paying school fees, up from 55 per cent in the last edition, after the government made them liable to VAT in its budget. Rising costs have also led many HNW families to reassess the value of private education. Over 25 per cent of respondents also said they were considering leaving the UK permanently. While a minority have firm plans to relocate, concerns over tax stability, long-term certainty and quality of life continue to shape decision-making, with the US, Canada and parts of Europe remaining the most popular destinations.

“The latest fall in the index highlights just how fragile the recovery in confidence is proving to be,” Dr Michael Peacey, senior lecturer, School of Economics, University of Bristol, added. “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 [that] 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,” he continued. “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.”