Higher Taxes on the Rich Could Backfire for UK Chancellor Reeves

Britain’s most affluent families have been hit by a sharp downturn in their personal finances, with higher taxes and sluggish pay threatening to stunt a crucial driver of the country’s consumer economy.

High-earners had been enjoying a good run, with disposable incomes rising 50% since the year before the pandemic according to Retail Economics. Yet that changed at the end of 2025, when growth all but disappeared.

Retail Economics’ data also showed Brits at the bottom of the ladder became 10% poorer since 2019, a factor that may have contributed to the left-leaning Labour government targeting tax hikes at “those ...