Monument Bank boss: Wealthy Brits in ‘fear’ ahead of punishing Budget

Wealthy British individuals are reportedly feeling "fear" in anticipation of the upcoming Budget, according to Ian Rand, the head of Monument Bank. The bank primarily serves affluent clients with six-figure investable assets. Rand noted that these clients have been expressing concerns over "certainty" and the potential for mistakes when attempting to safeguard their wealth during a challenging economic climate.

He described his clientele as "those who appear wealthy on paper but don't feel it," emphasizing that this sentiment has never been more accurate. The impending changes in inheritance tax, rental properties, and VAT on private schools are among the issues these customers are grappling with. They are having to reassess their financial strategies in ways they never have before.

Rand remarked that the bank frequently hears clients express fear about their financial future and the possibility of making the wrong decisions. He cautioned that while the full impact of the Budget remains uncertain, the "direction of travel is very clear that property and wealth are likely to become more challenging in the future."

The upcoming Budget, to be delivered by John Healey, will likely exacerbate these concerns, as Britons brace for potential tax hikes or budget cuts as he attempts to balance the national budget. Economists predict that Healey's fiscal headroom, which was £23.6bn in March, could have been reduced by half due to the ongoing Iran war, indicating that spending reductions or tax increases might be necessary to meet fiscal targets.

Additionally, Prime Minister Andy Burnham has announced a series of significant spending commitments, including nationalization, capping bus fares, and removing VAT from energy bills. These measures are expected to necessitate further fiscal adjustments. Rand expressed concern that many Brits, particularly those not wealthy enough to hire a financial advisor, lack guidance on how to best protect and grow their wealth.

This comes as Monument Bank released its 2025 financial year accounts, revealing a 35% increase in net income to £13.9m, but a corresponding 41% increase in losses to £19.4m. These figures are attributed to investments in the bank's banking-platform-as-a-service division. Interest income grew by 87% to £149m. Rand stated that while the bank aims to achieve profitability, 2026 will be focused on growth.

He emphasized that no entity desires to be small and profitable; rather, they strive to become large and profitable.