Wealthy Labour Voters Express Regret as Economic Confidence Plummets

A significant number of high-net-worth individuals (HNWIs) who supported Labour in the last general election now regret their decision, according to a recent survey. The poll, conducted by wealth manager Saltus, revealed that two-thirds of affluent voters who backed Sir Keir Starmer’s party in July now wish they had not, as concerns over tax policies and economic stability grow.

Key factors contributing to this shift in sentiment include changes to inheritance tax, the introduction of a 20% VAT on private school fees, and an increase in employers’ National Insurance contributions, which has raised staffing costs for business owners. These policies have led to a sharp decline in economic confidence among wealthy individuals, with confidence levels dropping from 84% in August—just a month after Labour’s victory—to a record low of 48% today.

Mike Stimpson, a partner at Saltus, described the trend as a “missed opportunity” for Labour. “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,” he said.

Labour’s pre-election campaign focused on attracting wealthy donors and business leaders, positioning itself as the “party of wealth creation” while pledging not to introduce major tax hikes. This strategy appeared successful, securing financial backing from high-profile figures, including a £4.5 million donation from Gary Lubner, the former chief executive of Autoglass’s parent company.

Despite these efforts, many affluent voters who supported Labour are now reassessing their stance. Analysts suggest that Labour’s success among HNWIs was, in part, a reaction against the Conservative government, whose reputation suffered after Liz Truss’s mini-Budget. However, since taking office, Chancellor Rachel Reeves has introduced a series of tax increases, fueling concerns among the wealthy. More than 80% of those surveyed anticipate further hikes in capital gains tax, income tax, and inheritance tax within the next year.

As a result, one in ten HNWIs is considering relocating abroad. According to the Adam Smith Institute, the UK lost 10,800 millionaires to overseas migration in 2024—more than double the number from the previous year. Notable departures include Charlie Mullins, founder of Pimlico Plumbers, who moved to Spain immediately after Labour’s victory.

This growing exodus has already prompted some policy reversals. The government recently softened its stance on tightening the non-domiciled tax regime, with Reeves announcing measures to make it easier for non-doms to bring wealth into the UK. Speaking at the World Economic Forum in Davos, Reeves stated: “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 poses a significant risk to public finances, as the top 1% of earners contribute nearly 30% of all income tax revenue. A continued outflow of HNWIs could place additional pressure on government funding for public services and economic growth initiatives.

Despite the growing unease, some wealthy Labour supporters remain committed to the party’s vision. Green energy entrepreneur Dale Vince, who donated £5 million to Labour, dismissed concerns over tax increases, telling critics to “f— off.”

In response to the backlash, a Treasury spokesperson defended the government’s fiscal approach. “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,” the spokesperson said.

As Labour faces mounting pressure from its affluent backers, the party’s ability to balance economic confidence with fiscal policy will be closely watched in the months ahead.