The biannual survey questioned 2,000 individuals with investible assets exceeding £250,000, and found broader confidence in the UK economy dropped to 59 per cent, down from 66 per cent in the previous report.

That compares with 84 per cent recorded before Labour’s first Budget in August 2024.

Nearly one quarter of respondents said they lacked confidence in the economy, with the figure rising to 61 per cent among those aged 65 and over.

By contrast, 78 per cent of those aged 25 to 44 said they were optimistic, compared with just nine per cent of over-65s.

Confidence in London’s position as Europe’s leading financial centre has also weakened.

The proportion of respondents who believe the capital will retain that status over the next decade fell from 73 per cent to 66 per cent overall.

Since taking office, Rachel Reeves has introduced a series of tax measures that have unsettled wealthier households.

These include maintaining frozen Income Tax thresholds, which have pulled more earners into higher bands, and increasing Capital Gains Tax on investment property disposals.

The Chancellor has also confirmed changes to Inheritance Tax reliefs, including the revised treatment of agricultural and business assets, and has reversed earlier signals on pension tax allowances.

Many wealthier Britons have cited these shifts, and the pace of U‑turns since the 2024 Budget, as contributing factors behind weaker confidence.

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Among those aged 65 and over, the figure dropped to 32 per cent.

Confidence in personal finances declined from 92 per cent to 87 per cent, returning to levels seen 12 months ago.

Taxation was identified as a key concern among high net worth individuals.

More than one in five respondents described the higher Income Tax rates of 40 and 45 per cent as unreasonably high.

Inheritance Tax was considered excessive by 16 per cent of those surveyed.

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When asked about barriers to economic growth, respondents cited higher and basic rate Income Tax, Employer National Insurance and Corporation Tax as principal obstacles.

Inflation was viewed as the biggest threat to personal wealth in 2026, identified by 51 per cent of respondents.

Tax changes were cited by 45 per cent, while 30 per cent pointed to interest rates as a growing concern.

Mike Stimpson, partner at Saltus, said: “The latest data show that the tentative recovery in confidence we saw in the second half of last year has not been sustained.

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“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.”

He added: “These individuals are investors, business owners and employers, and prolonged uncertainty risks dampening investment decisions at a time when the UK needs growth.”

Dr Michael Peacey, senior lecturer at the University of Bristol School of Economics, said: “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.”

Both experts indicated that clearer signals on future tax policy would be important in restoring sustained confidence among wealthy investors.