Study reveals wealthy investors are losing faith in the UK for investing and business
Wealthy investors are losing faith in the UK as a place to start a business and invest, new research with individual investors commissioned by Wealth Club shows.
Nearly two out of three (64%) don’t think the UK is a good place to set up a company while nearly half (47%) do not believe it is currently a good place to invest.
Even more damningly, nearly four out of five (79%) questioned believe the UK does not do enough to support wealth creation and wealth creators taking into account taxation as well as cultural and social factors.
Wealth Club, the UK’s largest non-advisory investment service for tax-efficient and private market investments, carried out the study ahead of today’s to find out what wealthy investors expect and what they are doing in advance.
The research found not all respondents are gloomy – around 30% say they feel wealthier than last year and 38% say they are about the same. Just a third (33%) say they are poorer than a year ago.
However, they are not optimistic about the current state of the UK’s economy and business outlook – only 11% believe the UK is an attractive place to set up a business while 24% are unsure. Around one in five believe the UK is a good place to invest currently while 33% are unsure.
Wealth Club founder and chief executive Alex Davies said: “There’s no doubt that investors are feeling downbeat. Many believe the UK is no longer a great place to start a business or invest, and that the country does little to support wealth creation and the entrepreneurs who drive it. This is a great shame – and should be a wakeup call for the government. It needs to do more than just say it understands how vital business and wealth creators are to the nation’s prosperity – it needs to take action.
“Yet despite the gloom, things aren’t as bad as they seem. The majority of those surveyed feel as wealthy or wealthier than a year ago.
“In addition, Britain still has many advantages over rivals when it comes to choosing where to start a business. You can register a company in minutes at Companies House, our bureaucracy is relatively light, and there’s a wealth of support available – from incubators to funding schemes. Initiatives like the Enterprise Investment Scheme (EIS) and Venture Capital Trusts are remarkable. They are a fantastic source of capital for businesses whilst reducing risks and potentially amplifying returns for investors.
That said, optimism is in short supply. It is therefore vital that the government recognises this and uses the Budget as an opportunity to champion enterprise by introducing measures that encourage investment and innovation, or at the very least, avoiding those that make wealth creation harder.”