As Andy Burnham prepares to move into Number 10 Downing Street, investors are already bracing for higher taxes. New research from Wealth Club shows an overwhelming 96.1% of investors expect taxes to increase over the next 12 months.

Mr Burnham will inherit one of the toughest fiscal challenges of any incoming Prime Minister in decades. With pressure to repair the public finances, fund public services and stimulate economic growth, investors believe that meeting those competing priorities is likely to require higher taxes. More than half (52.6%) believing taxes will definitely increase and a further 43.5% believing they will probably increase.

Perhaps the most revealing finding is what investors now see as the biggest risk to their wealth. Nearly 45% (44.9%) say higher taxes are their greatest concern, making them by far the biggest perceived threat. By comparison, just 3.5% cite inflation and the same proportion identify market volatility. That represents a significant shift in investor sentiment, with taxation now eclipsing many of the economic concerns that have dominated headlines in recent years.

Investors will understandably be looking for reassurance that any changes to the tax system support long-term economic growth, encourage investment and provide certainty for businesses and households. Many will be concerned that a heavier tax burden could weaken incentives to invest, save and grow businesses, potentially weighing on economic confidence at a time when the UK needs stronger private sector investment. Providing greater clarity over the future direction of tax policy will be just as important as delivering economic growth if the new government is to maintain confidence among businesses and investors.

With expectations of further tax rises running so high, now is the time to review financial plans, make full use of available tax allowances and ensure investments are structured as tax-efficiently as possible before any future changes are announced.

*Wealth Club’s investor survey was carried out on 6 July 2026.