British investors pulled a record £6.71bn from global equity markets last year, as months of pre-Budget uncertainty triggered a stock market exodus more than twice the scale seen around the Brexit referendum, new data shows.
According to figures from Calastone, UK investors withdrew £6.71bn from global stock market funds in 2025, the largest annual outflow in records stretching back 11 years. The figure more than doubled the previous record of £3.34bn set in 2016, the year of the Brexit vote.
The sell-off was concentrated in the second half of the year, with investors pulling £10.57bn between June and December. December marked the seventh consecutive month of net withdrawals, reversing inflows recorded earlier in 2025.
Edward Glyn, head of global markets at Calastone, said the stampede reflected investor anxiety ahead of November’s Budget, following an unusually long build-up marked by leaks, speculation over tax rises and repeated policy reversals.
Investors were particularly concerned about potential changes to tax-free pension allowances and capital gains tax, though neither measure was ultimately introduced.
“The sudden, dramatic slowdown in outflows between November and December is a clear indicator that months of pre-Budget speculation contributed to the record withdrawals from equity funds between June and Budget day,” Mr Glyn said.
Net outflows from equity funds fell sharply in December to £188m, compared with £812m in November. Calastone said withdrawals ceased on Budget day itself, with money flowing back into stocks for the remainder of the month.
The figures add to concerns that prolonged uncertainty ahead of Chancellor Rachel Reeves’s November 26 statement damaged confidence. The Bank of England had warned ahead of the Budget that heightened uncertainty could weigh on economic activity well into 2026.
Mark FitzPatrick, chief executive of St James’s Place, said last month that “kite-flying” around tax changes prompted savers to withdraw money from pension pots.
Commenting on the data, Mel Stride said uncertainty ahead of Ms Reeves’s Budgets had frozen investment, adding: “Her choices have killed investment, weakened growth and cost jobs.”
Calastone said broader valuation concerns also played a role, with fears growing over a potential bubble in artificial intelligence stocks. A record £5.84bn flowed into money market funds in 2025, indicating investors were favouring the perceived safety of cash.
Despite the FTSE 100 reaching fresh record highs last year, UK-focused equity funds saw net outflows of £9.55bn, marking the tenth consecutive year of withdrawals from British stocks by domestic investors.
Actively managed equity funds were hardest hit, losing £18.9bn of UK capital over the year, while global and North American funds attracted modest inflows in December.
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