Recent research indicates that the United Kingdom is expected to see a record number of millionaires leaving the country in the upcoming year. The Henley Private Wealth Migration Report predicts a net loss of 9,500 high-net-worth individuals in 2024, which is more than double the previous year’s figure. This exodus is expected to be exacerbated by the general election this year, further contributing to the departure of the super-rich from the UK.
Historically, the UK has been seen as a prime destination for wealthy individuals from various parts of the world. However, this trend started to reverse about a decade ago, with more millionaires choosing to leave the country rather than relocate to it. The UK has seen a total of 16,500 millionaires leaving the country between 2017 and 2023, post-Brexit. This trend is expected to continue in 2024, according to the research conducted by Henley.
The upcoming general election in the UK is expected to further accelerate the exodus of millionaires from the country. Recent polls show that the left-of-center Labour Party is leading over the right-wing Conservative Party. Labour’s manifesto includes plans to target loopholes benefiting the wealthy to fund public services, which could drive high-net-worth individuals away. The Conservative government has also adopted policies that align with Labour’s agenda, such as ending the non-dom tax regime and removing tax exemptions for private schools.
Over the past decade, the number of millionaires in the UK has dropped by 8%, a stark contrast to other major economies in Europe and beyond. Countries like Germany have seen a 15% increase in high-net-worth individuals, while the US has experienced a significant 62% jump in millionaire population. This decline in the UK’s millionaire population signals a worrying trend that needs to be addressed to maintain the country’s status as an attractive destination for the super-rich.
The UK is facing a significant challenge in retaining its millionaire population, with more wealthy individuals choosing to leave the country rather than relocate to it. The political and economic climate, as well as policy decisions taken by the government, play a crucial role in driving this exodus. To reverse this trend, the UK must address the concerns of high-net-worth individuals and create a more welcoming environment for wealth creation and investment. Failure to do so could have long-term implications for the country’s economy and global standing.