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.