Labour’s Electoral Betrayal13 Feb 2025 02:31
“THE majority of rich people who backed Labour at the election now regret it, according to a new poll.
Two thirds of high net worth individuals (HNWIs) who voted for Sir Keir Starmer’s party last July now wish they hadn’t, a survey from wealth manager Saltus has found.
Policies that have shattered faith in Labour include changes to inheritance tax, the addition of VAT – at 20pc – to private school fees and an increase in employers’ National Insurance contributions, which has pushed up staffing costs for business owners.
A poll of 2,000 people, each with more than £250,000 of investable assets, found confidence in the economy had plummeted among this group since the election. The percentage of wealthy individuals who are confident in the economy’s prospects has plunged from 84pc in August, a month after Labour’s election victory, to 48pc today – a record low.
Mike Stimpson, a partner at Saltus, said: “The extent to which the confidence of high net worth individuals has collapsed demonstrates a missed opportunity for the new Government, who had high levels of support when they came to power and drove the highest levels of HNWI confidence in the UK economy we have ever recorded.”
Labour campaigned hard to win over the wealthy at the last election, with promises not to raise key taxes and a vow to focus on economic growth. Sir Keir claimed his was “the party of wealth creation” in Labour’s manifesto.
It paid off as donations flooded into Labour’s coffers. Backers include Gary Lubner, the former chief executive of Autoglass’s parent company, who donated £4.5m to the party before the election.
More than one third of the country’s HNWIs eventually backed Labour, according to Saltus.
However, optimism has “disbanded at an absolute rate of knots” in the wake of the Chancellor’s October Budget, which raised taxes by a record amount.
The wealthy fear worse is to come: more than eight in 10 think the Government will increase taxes further in the coming year. They believe capital gains tax, income tax and inheritance tax are most likely to rise.
As a result, one in 10 is considering permanently leaving the UK, Saltus said.“
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