The number of millionaires in Britain has fallen to its lowest level since the global financial crisis in 2008, the latest economic analyses published at the end of July show.
According to the annual index “Millionaire Tracker“ of the prestigious British think tank Adam Smith Institute (ASI), there are currently just 442,000 senior citizens with a net worth of one million pounds or more living in the country. This is a sharp decline of 7% year-on-year and marks the fourth consecutive year of shrinking wealth on the Island since a historic peak in 2021, when their number exceeded 1 million people.
The study, based on official macroeconomic data on The British Office for National Statistics (Office for National Statistics) measures the value of citizens' property, pensions, savings and financial assets after deducting their debts. The results send a worrying signal to the government in London about a massive outflow of capital and entrepreneurs.
Why are millionaires leaving the UK?
Experts report a combination of economic and political factors that are undermining Britain's attractiveness as a global financial center:
Radical tax reforms: A major driver for capital redeployment is the abolition of the centuries-old “non-dom“ tax status. The reform imposed a tax on foreign income of wealthy foreigners residing in the country. Talk of equalizing capital gains tax with income tax further increases uncertainty. Interest rates and the real estate market: The Central Bank's persistently high interest rates after the pandemic have put serious pressure on real estate prices. They also lowered the real value of private pension funds. Inflationary pressures: The Adam Smith Institute analysis uses constant prices to adjust for the effect of inflation. This shows that the real purchasing power of accumulated wealth has shrunk significantly.The government's political opponents immediately reacted to the report. Shadow Business Secretary Andrew Griffith told the media that "when young, ambitious and successful people vote with their feet and leave the country, it is a disgrace". According to him, the absence of these taxpayers directly damages the funding of public sectors such as the NHS and defence.
The debate: "Tax us more" against the threat of poverty
Despite conservative criticism, not all millionaires share the desire to leave the island. The organization Patriotic Millionaires UK, which unites hundreds of wealthy Britons (including famous figures such as Gary Lineker and director Richard Curtis), issued an open letter to the prime minister. They are calling for an additional 2% wealth tax on wealth above £10 million to reduce economic inequality in the country.
A survey by the agency Survation for the same organization shows that nearly three-quarters (75%) of wealthy Britons surveyed are actually willing to pay higher taxes. They believe their money should go to strengthening social infrastructure and hospitals, rather than sitting idle.
However, international wealth migration rankings, such as those by Henley & Partners and Knight Frank, continue to place the United Kingdom among the countries with the largest net outflow of millionaires globally. The main destinations where British wealthy people are moving their assets and businesses are emerging as the United Arab Emirates, the United States, Switzerland, as well as European countries with tax breaks such as Italy, Cyprus and Portugal.