More than three-quarters of Britain's highest earners don't consider themselves wealthy despite earning salaries exceeding £125,000, according to a revealing new poll that exposes the nation's complex relationship with wealth and taxation.
The Wealth Perception Gap
A comprehensive YouGov survey conducted for The Times uncovered that 76% of individuals earning over £125,000 stated they did not feel rich at all. The research, which interviewed more than 4,000 people, found only 21% of top rate taxpayers acknowledged feeling wealthy, while approximately 2% remained uncertain about their financial standing.
The findings emerge as higher-earners brace for potential tax increases following Chancellor Rachel Reeves' warning that she will target those with the 'broadest shoulders' in her upcoming Budget announcement next week.
The Tax Threshold Squeeze
The current tax system creates significant financial pressure for high earners. Those earning above £100,000 begin losing their tax-free personal allowance of £12,570, which reduces by £1 for every £2 that their income exceeds the £100,000 threshold.
This mechanism means the personal allowance completely disappears for individuals earning £125,140 or more, which is also the precise point where the additional 45p rate of income tax takes effect.
Surprisingly, the poll indicated that traditional wealth markers - including owning a property outright, possessing over £1 million in cash savings, or earning a six-figure salary - frequently failed to make Britons feel genuinely wealthy.
Political and Economic Fallout
Sir Mel Stride, the Conservative shadow chancellor, described the poll results as 'sadly not surprising' while criticising what he called a 'tangled' tax system. 'Britain should reward hard work, not punish ambition,' Sir Mel stated. 'Yet too often those who strive to get ahead face a tax system so tangled it slows growth and stifles aspiration.'
The political debate intensifies as former Bank of England chief economist Andy Haldane blamed Budget speculation for weaker-than-expected economic growth. Haldane told Sky News that the build-up to Ms Reeves' fiscal package on 26 November had become a 'circus' that was discouraging business investment and consumer spending.
Meanwhile, wealth management professionals report that their high-net-worth clients are making significant lifestyle compromises. 'Our typical clients are high-net worth individuals but they certainly don't feel they have lavish amounts of income,' noted Jason Hollands of Evelyn Partners.
As the Treasury considers extending income tax threshold freezes until 2030 and potentially introducing new levies on valuable properties, the disconnect between income figures and wealth perception appears set to widen further across Britain's highest earners.
