One in eight (12%) retail investors have withdrawn some or all their investments since the start of October, while 16% moved their investments around, research by Opinium has shown.

New polling by the group also revealed that over a quarter (28%) of investors continued to add the same amount to their investments.

Opinium’s research, based on a survey of 1,000 UK investors, showed that among those who withdrew their investments, 32% cited concerns about rumoured changes in the upcoming Autumn Budget, while 36% cited concerns about market conditions. Two in five (39%) said they needed cash or liquidity, while a quarter (25%) say said financial goals had changed.

Ahead of the Budget, speculation is mounting that Chancellor Rachel Reeves might cut the tax-free limit for cash ISAs from £20,000 to £10,000, with the aim of driving more people to invest.

Opinium’s research revealed that two in five (41%) investors with cash savings said they would invest money that they would otherwise have put into their cash ISA, including 30% into stocks and shares ISAs and 18% into other investment products.

However, 28% said they would simply move their cash into another savings product, while 5% would spend it, potentially undermining the Chancellor’s aim to increase investment with this measure.

Research manager at Opinium, Eliza Arkuszewska, commented: “Our research underlines how sensitive UK investors remain to fiscal signals from the Government.

“Some are staying put for now to see what emerges from the Budget next week, but rumours of tax rises have prompted some investors to step back from the market, creating a temporary drag on investment flows at a time when economic momentum is still fragile.

“However, the fact that most intend to reinvest at some point after the Autumn Statement is a positive sign. The overall message is clear: stability and clarity are essential to support healthy, long-term capital allocation in the UK.”

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