Millionaires Set To Flee Britain In Record Numbers In 2024 Over Economic, Political Instability: They 'Are Already Voting With Their Feet'

Nearly 10,000 millionaires are expected to flee Britain in 2024, driven away by mounting economic and political uncertainties.

This mass exodus, highlighted in the Henley Private Wealth Migration Report 2024, marks a record-breaking surge in wealthy individuals leaving the UK, and it comes at a pivotal moment just weeks before the country’s July 4 elections.

The anticipated outflow of 9,500 millionaires will be eclipsed only by China, which is expected to see 15,200 of its affluent citizens depart. This British migration figure is more than double the 4,200 who left last year, underscoring the increasing dissatisfaction among the UK’s wealthy elite.

Post-Brexit, from 2017 to 2023, the UK has already witnessed a significant exodus of millionaires, totaling 16,500. This ongoing trend paints a stark picture of the nation’s shifting economic landscape and the broader global movement of wealth. On a global scale, approximately 128,000 millionaires are projected to relocate in 2024.

“Over 7% of the 128,000 millionaires projected to move globally in 2024 will be choosing to depart the UK,” said Dr. Hannah White OBE, director and CEO of the Institute for Government in London.

For the third consecutive year, the UAE is set to be the world’s leading wealth magnet, attracting a record 6,700 millionaires.

Meanwhile, the United States, holding the second spot globally, is expected to welcome 3,800 millionaires in 2024, up from the 2,200 who entered in 2023. This steady influx highlights the enduring appeal of the American dream for the world’s wealthy.

“The outflow already generated by the economic and political turmoil in Britain risks being accelerated by further unwelcome policy decisions ahead of the election,” White said.

White also highlighted the tax pressures facing the wealthy, “On top of the 40% duty already imposed on estates above a GBP 325,000 threshold, the Conservative government has adopted the thrust of the Labour opposition's policy of ending the UK's non-dom tax regime from 2025.”

“And for those educating their children in the UK's well-regarded private school sector, Labour's commitment to remove their exemption from 20% VAT is a further unwelcome development,” she added.

“Less than 18 months since [Rishi] Sunak took office, the UK faces further political change, with a general election now set for 4 July 2024, and polls having pointed consistently since the start of 2023 to a victory for the opposition Labour party led by Keir Starmer,” White noted.

UK Lost 8% Of Its Millionaires In Last 10 Years

According to the historical data gathered by Henley & Partners’, the UK has lost 8% of its millionaires in the last decade, while Canada, Australia and the U.S. witnessed increases of 29%, 35% and 62%, respectively.

A weak track record of governing has exacerbated the economic situation, already strained by external factors. Significant political turmoil has plagued Britain, with three Conservative prime ministers taking power in quick succession in the latter half of 2022. Boris Johnson's scandal-driven departure from office was followed by the fleeting and economically disastrous Liz Truss premiership, before the installment of former Finance Minister Sunak.

“This domestic instability, accompanied by a lack of policy space to address the structural factors impeding the UK economy, has contributed to an uncertain investment climate,” White said.

According to the expert, the aftermath of Brexit continues to resonate, with the City of London no longer regarded as the world’s premier financial hub. Despite efforts to retain city employers, such as the 2022 repeal of EU regulations limiting bankers’ bonuses, confidence remains shaken.

Compounding these challenges, the war in Ukraine and the ensuing energy crisis have disproportionately affected the UK, more so than any other Western European nation.

Spear's Contributing Editor Alec Marsh agrees, saying, “Even before the starting gun was fired on July 4's general election, it's apparent that the wealthy in Britain are already voting with their feet.”

UK’s Top 100 Companies Lag Far Behind US Counterparts

Reflecting the worsening political and economic landscape in the UK, the FTSE 100 index, tracked by the iShares MSCI United Kingdom ETF EWU, has seen a modest rise of 9.7% over the past five years.

In stark contrast, the largest 100 U.S. companies, tracked by the iShares S&P 100 ETF OEF, have surged by 103% in the same period.

This dramatic difference highlights an overperformance of more than 90 percentage points by U.S. companies compared to their UK counterparts in only five years.