Exodus of millionaires watched
The super-rich are turning their backs on Britain
1/20/2023 5:42 p.m
British Prime Minister Sunak is a multi-millionaire, but more and more wealthy individuals are leaving the UK. That comes from a report. The winners of this development are Europe, Asia and the Middle East – that’s where the wealthy are now drawn to.
The UK appears to be rapidly losing its reputation as a magnet for wealthy investors and business people. 2022 left according to one Report of the British “The Times” 1,400 more wealthy individuals with assets in excess of $1 million, UK. The newspaper refers to data from the consulting firm Henley & Partners. Experts estimate that there are currently around 737,000 such millionaires living in the UK.
The recent millionaire exodus continues a trend that began shortly after the Brexit vote in 2016. Since then, an estimated 12,000 millionaires have left Britain to settle elsewhere. According to the report, among them are high-earning bankers whose employers had relocated their jobs to Europe in the wake of Brexit. According to the European Banking Authority, relocations from London are the main reason why the number of European bankers earning more than €1 million rose by more than 40 percent in 2021 to 1957, reports The Times.
Britain was once very popular with the wealthy, drawn by its relative political stability and soft regulation. In 2009, for example, the then Mayor of London, Boris Johnson, fought against EU regulations on hedge funds because he feared they would turn away from fund managers. In addition, the time zone is almost perfect for doing business with customers from all over the world, according to the advantages of the location.
Brexit firmly anchored – longer-term consequences to be felt
But the negative effects of the British isolation now outweigh the negative effects, writes the paper. “Now that Brexit is firmly entrenched and the very real longer-term consequences are being felt, we have seen an increased movement from wealthy British citizens to reclaim their EU status by pursuing EU residency or EU citizenship investment,” said Stuart Wakeling, head of Henley & Partners’ London office.
While globe-trotting millionaires have been tempted to set up shop in the UK in the past, most are now looking to the Middle East and Asia. According to Henley & Partners, the United Arab Emirates is estimated to have seen the largest influx of high net worth individuals last year.