A quarter of Britain’s wealthiest families are considering leaving the country amid looming tax changes in Chancellor Rachel Reeves’ November Budget, according to a survey by wealth manager Saltus. Confidence among high net worth individuals (HNWIs) remains low after last year’s record tax-raising Budget, and new concerns over private school VAT and inheritance tax are fuelling uncertainty.
Saltus partner Mike Stimpson warned that the risks go far beyond individual households. “These are the wealth creators, investors and employers who drive economic growth. If their confidence is undermined by continual uncertainty, that has consequences for everyone,” he said.
Private School Fees at the Centre of Backlash
The introduction of VAT on private school fees has emerged as one of the most contentious policies. One in seven wealthy parents said the move is prompting them to consider leaving Britain, while nearly half of those who voted Labour last year now regret their decision because of the fees policy.
Families are already making significant sacrifices. A third prepaid school fees before VAT took effect, one in ten remortgaged their homes, and one quarter cut back pension contributions. Others reported moving house or taking loans to offset the higher costs.
Families Rethinking Education Choices
The survey also revealed a shift in how wealthy households are approaching education. One in five parents have already moved children out of private schools, with many opting for state or grammar schools.
Alex Pugh, a chartered financial planner at Saltus, explained: “Families are choosing to transition at times when disruption to education is minimal, such as starting secondary school or sixth form. These are planned moves, not knee-jerk reactions, but the higher fees are clearly a factor.”
Wider Economic Confidence Slips
Concerns extend well beyond education. One in eight respondents said Britain is no longer a good place to start a business, while 14 per cent said the UK is less attractive for raising a family. A further 16 per cent pointed to inheritance tax as a reason for dissatisfaction.
Analysts warn that the cumulative effect of these pressures could dent the UK’s competitiveness, particularly if high earners, investors and entrepreneurs decide to relocate abroad.
Political Risk for Labour
For Labour, the survey results pose growing political risks. The backlash against school fee taxation highlights the potential for policies intended to raise funds for public services to backfire. With wealthy households reconsidering their position, there is concern that Reeves’ November Budget could deepen tensions.
Nearly half of wealthy Labour voters surveyed expressed regret, signalling possible long-term challenges for the party’s support base.
Risks of Capital Flight
Saltus defines HNWIs as those holding at least £250,000 in investible assets. For this group, relocating abroad is becoming an increasingly attractive option. Stimpson said the government’s lack of fiscal room is creating a “climate of fear” among affluent households who expect further changes in November.
Analysts warn that large-scale departures could shrink the tax base, reduce investment and cost thousands of jobs, hitting both the economy and public finances.
Autumn Budget Looms Large
Reeves will present her Autumn Statement on 26 November. Observers say the Chancellor must tread carefully to raise revenue while maintaining the UK’s competitiveness. Missteps could accelerate the very wealth exodus many fear.
For now, wealthy families are preparing for the worst. With VAT on private school fees already reshaping household finances, further tax changes could make Britain less attractive for those who drive investment and growth.
The Saltus survey underscores how fragile confidence is among high net worth individuals, with one in four considering leaving the UK under Labour’s new tax policies. The imposition of VAT on private school fees has hit particularly hard, reshaping family finances and even altering long-term education choices.
With inheritance tax changes and broader fiscal uncertainty also weighing heavily, the survey reflects a wider sense that Britain is becoming less attractive for wealth creators and investors. The risk of capital flight presents a significant challenge for Chancellor Rachel Reeves, who faces a delicate balancing act in her November Budget.
