Top British earners think 'UK is heading for a recession'

Britain's affluent anticipate a credit crunch. Getty Images

Six in 10 top-earning Brits think the UK is heading into a recession, research published on Friday shows.

In a YouGov poll of 514 people with a household income of £100,000 or more, 62% anticipated a credit crunch.

And the vast majority – an overwhelming 73% – think the downturn is likely to last longer than a year.

READ MORE: Employment rate falls as Brexit takes its toll on the UK economy

Experts believe the UK economy could already be in recession, and that it would face a “severe downturn” in the event of a no-deal Brexit.

Just 12% of Britain’s wealthy feel confident in the strength of the UK economy at present, and just 8% have faith in the global economy, the study found.

However, a third said they feel confident in “their personal economy”.

The average UK household income was £28,400 in 2018, according to the Office for National Statistics.

READ MORE: UK watchdog – no-deal Brexit recession could see house prices crash

When asked where their lack of confidence comes from, almost half (45%) of Brits said they are worried about the “impact of international politics” on the UK.

Meanwhile, a quarter (27%) said income disparity is a concern for them, and almost as many (24%) expressed concern about the possibility of cyber-warfare. A fifth (19%) of high-earning Brits said they were concerned about immigration.

However, none of this is about to stop them splashing out on luxury items.

READ MORE: What Brexit could mean for the US economy

Britain’s affluent said the only thing that would impact their spending is a lack of confidence in their personal economy. Though not very high, this still three times higher than that in the economy of the country.

For two in three (63%), confidence in their personal economy is extremely or very influential to their propensity to buy luxury goods.

Just a fifth (21%) said the same about their confidence in the country’s economy, and only 9% are affected by their confidence in the global economy.

Bank of England governor Mark Carney has also warned a no-deal Brexit would result in an instant shock to the UK economy.

Items like petrol and food would become more expensive if the UK leaves the EU without an agreement, he told BBC Radio 4’s Today programme.