Thousands of millionaires are fleeing Britain

A record number of millionaires are expected to leave the United Kingdom this year due to political instability and the prospect of higher taxes under a potential Labour government, diminishing the country’s appeal as a top destination for the wealthy.

According to a report released Tuesday by migration advisers Henley & Partners, up to 9,500 individuals with at least $1 million in liquid, investable assets will depart the UK, more than double the number who left in 2023. These figures indicate a growing list of factors that are making the UK less attractive to high-net-worth individuals, said Hannah White, CEO of the Institute for Government, in the report. The lingering effects of Brexit have particularly impacted the UK’s appeal, with London no longer perceived as the world’s financial hub.

The report is based on data from New World Wealth, which tracks 150,000 high-net-worth individuals globally. It considers individuals who reside in their new country for more than half of the year, focusing on company founders, chairs, CEOs, presidents, directors, and managing partners.

This trend is part of a broader global migration of the wealthy, which appears to be accelerating. The Henley Private Wealth Migration report estimates that 128,000 millionaires will relocate this year, surpassing last year’s record by 8,000. Dominic Volek, head of private clients at Henley & Partners, stated in a press release that amid geopolitical tensions, economic uncertainty, and social upheaval, millionaires are relocating in unprecedented numbers.

Among the top 15 places with the most resident millionaires, the UK is experiencing significant losses—second only to China, which is expected to lose 15,200 high-net-worth individuals in 2024. Unlike the UK, countries like the US, Canada, Australia, Germany, and France have seen an increase in their wealthy populations over the past decade.

Brexit, which ended the free movement of people between the UK and the European Union and introduced new trade and investment barriers, along with other economic shocks such as the war in Ukraine and rising energy prices, has compounded the UK’s economic challenges. Political instability has further exacerbated these issues, with the UK having five prime ministers since 2010, including the brief 45-day tenure of Liz Truss in 2022. Her economic policies led to a sharp decline in the pound and forced the Bank of England to intervene to avert a financial crisis.

This instability has made it difficult for policymakers to address the UK’s sluggish economic growth and improve the investment climate. Additionally, Keir Starmer’s Labour Party, which leads Prime Minister Rishi Sunak’s Conservatives by about 20% in opinion polls, poses a new risk. Although Labour has sought to attract business and investors by promising economic stability and growth, it has also committed to targeted tax increases that could affect the wealthy. These include removing a tax break from private schools, closing tax loopholes for non-domiciled residents, and raising more revenue from private equity firms.

Despite these challenges, some wealthy individuals, including Prime Minister Sunak and his wife Akshata Murty, intend to remain in the UK regardless of the election outcome. Sunak, a millionaire former hedge fund manager, and Murty, the daughter of an Indian tech billionaire, are worth £651 million ($826 million) according to The Sunday Times Rich List, making them wealthier than King Charles. Sunak has stated he will serve a full term as a member of parliament for his northern England constituency even if his party is ousted from government.