Ultra-wealthy regret voting Labour as confidence in economy plummets

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.

More than a third of the UK’s HNWIs ultimately voted Labour, but analysts now describe this as a “protest vote” against the Conservatives, whose reputation among the wealthy was severely damaged by Liz Truss’s mini-Budget.

Since taking office, Chancellor Rachel Reeves has introduced tax increases that have further shaken confidence among wealthy individuals. The October Budget raised taxes by a record amount, with fears that more hikes are on the way. Over 80% of those surveyed expect the government to raise capital gains tax, income tax, and inheritance tax within the next year.

As a result, one in ten HNWIs is considering leaving the UK permanently. According to the Adam Smith Institute, Britain lost 10,800 millionaires to overseas relocation in 2024 – more than double the number in 2023.

Among the high-profile departures is Charlie Mullins, founder of Pimlico Plumbers, who moved to Spain “as soon as Labour won the election.” The exodus of wealth has already forced a policy shift, with the government backtracking on proposed tightening of the non-dom tax regime. Reeves recently announced measures to make it easier for non-doms to bring money into the UK, acknowledging the need to retain wealth and investment.

Speaking at the World Economic Forum in Davos, Reeves said: “We’re always interested in hearing ideas for making our tax regime more attractive to talented entrepreneurs and business leaders from around the world to help create jobs and wealth in the UK.”

The departure of wealthy individuals could have significant economic consequences. The top 1% of earners contribute nearly 30% of all income tax, meaning a continued outflow of HNWIs would put additional strain on public finances.

However, not all affluent Labour supporters are disillusioned. Green energy tycoon Dale Vince, who donated £5m to the party, remains a staunch backer. In October, he dismissed those threatening to leave the country over tax rises, saying they should “f— off.”

A Treasury spokesperson defended the government’s approach, stating: “At the Budget, we made the difficult decisions needed on tax to fix the foundations and increase investment in public services and the economy, to rebuild Britain and unlock long-term growth.”