A majority of high-net-worth individuals (HNWIs) who backed Labour in the last election now regret their decision, as confidence in the UK economy nosedives, according to a new survey.
The poll, conducted by wealth manager Saltus, found that two-thirds of affluent voters who supported Sir Keir Starmer’s party in July now wish they had not. Key policies denting confidence include changes to inheritance tax, the introduction of 20% VAT on private school fees, and an increase in employers’ National Insurance contributions, which has raised staffing costs for business owners.
The survey of 2,000 individuals with at least £250,000 in investable assets found that confidence in the UK economy among this group has fallen sharply from 84% in August – a month after Labour’s victory – to just 48% today, marking a record low.
Mike Stimpson, a partner at Saltus, described the shift as a “missed opportunity” for Labour. He said: “Confidence is a critical component in growth, and the fact that this vitally important group – 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.”
Labour worked hard to court wealthy donors during the election campaign, pledging not to raise key taxes while positioning itself as “the party of wealth creation.” This strategy paid off, attracting significant financial support, including a £4.5m donation from Gary Lubner, former chief executive of Autoglass’s parent company.
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