The United Kingdom is facing an alarming trend as a record number of millionaires are expected to leave the country this year, according to new research. The upcoming general election is predicted to further exacerbate this exodus, with significant implications for the country’s economy and overall wealth distribution.
The Henley Private Wealth Migration Report highlights that Britain is projected to experience a net loss of 9,500 high-net-worth individuals in 2024, more than double the previous year’s figure. This shift marks a stark turnaround for the UK, once considered a prime location for the world’s super-rich. The consultancy tracking migration trends noted that in recent years, more millionaires have been leaving the country than coming in, reversing a long-standing trend of affluent families relocating to the UK from various regions worldwide.
The looming general election is expected to accelerate the millionaire exodus, with recent polls indicating a sizable lead for the left-of-center Labour Party over the right-wing Conservative Party. Labour’s focus on wealth creation, coupled with plans to target loopholes benefiting the wealthy to fund public services, has raised concerns among high-net-worth individuals. Policy decisions ahead of the election, such as closing tax loopholes and raising taxes on specific transactions, have further fueled this exodus.
The departure of millionaires from the UK has significant implications for the country’s wealth distribution. The number of millionaires in the UK has declined by 8% over the past decade, in stark contrast to other major economies in Europe and beyond where the number of high-net-worth individuals has been on the rise. Countries like Germany have seen a 15% increase in millionaires, while the US has witnessed a substantial 62% jump in affluent individuals over the same period.
The exodus of millionaires from the UK is a concerning trend that could have far-reaching consequences for the country’s economy and overall wealth landscape. The combination of political uncertainty, changing tax policies, and global economic shifts has contributed to this migration pattern, with high-net-worth individuals seeking more favorable conditions elsewhere. It remains to be seen how the government and policymakers in the UK will address this trend and work towards retaining and attracting wealth in the country.