The United Kingdom is facing a troubling trend, as a record number of millionaires are expected to leave the country in 2024. This is according to the Henley Private Wealth Migration Report, which predicts a net loss of 9,500 high-net-worth individuals this year. This marks a significant increase from the 4,200 millionaires who left the UK last year. The research also highlights that the UK is now ranked second only to China in terms of millionaire outflows, with China expected to see a net loss of 15,200 millionaires in 2024.
It is important to recognize that the UK’s status as a prime destination for the world’s super-rich has shifted over the years. In the past, the country saw an influx of wealthy families from across mainland Europe, Africa, Asia, and the Middle East. However, this trend began to reverse about a decade ago, with more millionaires leaving the country than coming in. The report notes that the UK lost a total of 16,500 millionaires to migration between 2017 and 2023, and the numbers are expected to worsen in 2024.
Political Influence
The upcoming general election in the UK is expected to further accelerate the exodus of millionaires. Recent polls indicate that the left-of-center Labour Party is leading over the right-wing Conservative Party by a significant margin. Labour has positioned itself as a pro-business party but has also made clear its intentions to target tax loopholes that benefit the wealthy in order to fund public services. This stance, along with other policy decisions, is likely to drive more high-net-worth individuals out of the country.
The departure of millionaires from the UK is already having a noticeable impact on the country’s economy. According to Henley, the number of millionaires in the UK has dropped by 8% over the past decade. This stands in stark contrast to other major economies in Europe and beyond, where the number of high-net-worth individuals has been on the rise. For example, Germany has seen a 15% increase in millionaires, while the US has witnessed a 62% jump.
The UK’s loss of millionaires is a concerning trend that could have long-term repercussions for the country’s economy and reputation as a financial hub. The political landscape and policy decisions are likely to drive more wealthy individuals away, further exacerbating the issue. It is essential for the UK government to carefully consider the impact of its actions on the country’s wealthiest residents and take steps to prevent further losses in the future.