Rich believe Tories will make them richer

Rich believe Tories will make them richer

Wealthy investors believe the Conservative government will make them richer, according to a survey.

Nearly 60 per cent of high net worth (HNW) individuals believe the new-look Conservative/DUP coalition government will make them richer over the next five years, compared to 51 per cent of people nationally.

The study defined HNW individuals as those having more than £100,000 in assets excluding property or pension.

Almost two thirds of these individuals believe that the government will put the UK in a stronger position after Brexit than it was before, and three quarters believe that the government will protect the interests of private investors and help them to grow their portfolios.

The survey, by IW capital, polled 2,000 adults. It also discovered that Londoners are more confident than others in the current government and its effect on their financial position.

More than half (54 per cent) of Londoners of all incomes think the government will make them richer over the next five years and 60 per cent think that the government will put the UK economy in a stronger position after Brexit. The UK average was 58 per cent on economic strength.

The news comes after official figures showed that the disposable income of British families has fallen in each of the three quarters since the UK voted to leave the EU last year, with taxes and inflation rising and benefits shrinking.

Disposable income per person was two per cent lower in the first quarter of 2017 than a year earlier.

However, figures from the Institute of Fiscal Studies, which looked at the impact of the Tory manifesto before the election, suggested that richer people would indeed be better off under the Conservatives, thanks to a commitment to raise the higher rate tax threshold.

The IFS calculated that this policy combined with an increase in the personal allowance, would allow higher-rate taxpayers to gain £208 per year in total, while about half a million additional rate taxpayers – who do not get a personal allowance – would still gain £175 per year.

Luke Davis, CEO of IW Capital, said: "The nation’s high net-worths serve tremendous value in catalysing and sustaining economic momentum, so the positive sentiment revealed today is encouraging.

"The general election result may have come as a shock, but today’s research demonstrates that much like Brexit uncertainty, wider investor sentiment remains buoyant.

"It is vital in the current period of political and economic transition, that those who hold significant investment capability are supported in their financial intentions.”