A survey of wealth managers, fund managers, and stockbrokers managing over £100 billion in assets has signaled strong opposition to potential tax increases in the upcoming UK budget, warning that such measures could reduce investments in British businesses. The survey, conducted by Capital Access Group, reflects concerns among investors about the impact of tax policy on capital markets and economic growth.

Richard Feigen, chief executive of Capital Access Group, highlighted the critical role that private client money managers play as investors in smaller and mid-sized UK-listed companies. He said any pullback from this segment could lead to weaker valuations and lower trading volumes, which in turn could undermine the future prosperity of the UK economy.

Among the surveyed investors, three-quarters indicated that further tax increases would discourage them from investing in UK shares. The group advocated for a more pro-business tax stance, emphasizing measures such as cuts to employers’ national insurance contributions, avoidance of windfall taxes, and no rises to capital gains tax (CGT). One stockbroker noted that an increase in CGT would shift investment away from UK equities toward fixed income assets.

Although some political figures, including allies of Chancellor John Healey, have called for higher CGT on shares, the chancellor is not widely expected to implement such changes in the forthcoming budget.

The most frequently mentioned request was the reduction or abolition of the 0.5 percent stamp duty on share purchases. Investors have long criticized the stamp duty for deterring investment in UK-listed stocks, especially given that markets such as the United States do not impose such fees. A private client broker described the levy as “ridiculous,” contrasting the higher costs of buying shares in UK firms like Shell compared to US counterparts such as Exxon.

Feigen summarized the investors’ message to the government as a call to eliminate stamp duty on British shares, encourage the deployment of ISA and pension savings into UK companies, and ease the overall tax burden on businesses.

The survey also found broad support for a policy mandating that a portion of stocks and shares ISAs be invested domestically, an initiative some respondents called a “huge start” that would impose no immediate cost on the government. Other investor suggestions included reinstating tax relief on shares of companies listed on the AIM market, implementing more effective energy policies, and committing to public spending restraint.

Despite these recommendations, several investment managers expressed skepticism about the immediate impact of the upcoming budget, suggesting that broader economic factors such as interest rates and growth prospects would play a larger role in shaping investment decisions.