Britain’s millionaire count plunges to lowest since 2008 crisis

The number of millionaires living in Britain has fallen to its lowest level since the global financial crisis of 2008, a stark warning that the country is losing its allure for the wealthy. According to a new index from the Adam Smith Institute, the number of high net worth individuals (HNWIs) dropped by 7 per cent from 2024 to just 442,000 last year.

This decline, the think tank argues, is driven by falling asset prices, a low household saving rate, and a well documented exodus of the wealthy from these shores. For a nation that has long prided itself on being a global hub for enterprise and capital, the figures are deeply troubling.

Why are Britain’s millionaires leaving?

The Adam Smith Institute’s tracker, which adjusts for inflation and exchange rates using “constant prices”, defines a sterling millionaire as someone holding assets worth more than £1 million across property, stocks, pensions, and savings. The institute, a right leaning research body, points to a combination of economic headwinds and punitive tax policies as the root cause.

“There is a well documented trend of high net worth individuals either leaving Britain or no longer choosing to move here,” the report states, though it acknowledges this has not yet been captured in HMRC data. The institute calls for urgent policy changes, including abolishing inheritance tax, phasing out capital gains tax, and reforming the non dom tax regime.

The tax burden on the wealthy is rising

Inheritance tax receipts have already climbed from £7.2 billion in 2023-24 to £8.5 billion by 2025-26, and are forecast to surge past £14.5 billion by 2030-31. This is due to frozen thresholds, fiscal drag, and the planned inclusion of pension pots in IHT calculations. The Treasury may see this as a windfall, but the Adam Smith Institute warns it is driving away the very people who create jobs and wealth.

“Calls for a wealth tax are particularly misguided,” the report argues, citing the failures of such policies in France, Sweden, and the Netherlands, where tax revenues were low and the wealthy simply left. Multiple economists and tax experts agree that a wealth tax is a poor approach.

Political reaction: a shameful sign for Britain

Andrew Griffith, the shadow business secretary, did not mince words. “Whatever their personal finances, everyone should care about Britain having fewer millionaires to contribute to the tax pot and creating jobs and businesses here. It’s a competitive world and when young and ambitious people are voting with their feet and leaving your country that’s a shameful sign.”

The report did not carry a comment from the government’s business secretary, Jonathan Reynolds, nor from Peter Kyle, who served under Sir Keir Starmer. Their silence speaks volumes.

What does this mean for the British economy?

Mitchell Palmer, an economist at the Adam Smith Institute, put it bluntly: “The decline in millionaires may be greeted as a success by some on the Left, but it should instead be viewed as a warning signal. Every millionaire that leaves means less capital for British businesses, fewer international connections, and weaker entrepreneurial spirit in the economy.”

He added: “Recently mooted anti wealth proposals, such as a wealth tax or equalising the capital gains tax rate with income tax, will only make this problem worse. Instead, the government should focus on making Britain an attractive place for ambitious people to build and keep their wealth. This includes cutting or abolishing inheritance tax and capital gains tax.”

For a country that once stood as a beacon of free enterprise, the message is clear: Britain is no longer the land of opportunity it once was. The decline in millionaires is not a cause for celebration, but a call to action.

Frequently asked questions

Why has the number of millionaires in the UK fallen?

The drop is attributed to falling asset prices, a low household saving rate, and a trend of high net worth individuals leaving the UK or choosing not to move here, according to the Adam Smith Institute.

What tax changes are being proposed to reverse this trend?

The Adam Smith Institute calls for abolishing inheritance tax, phasing out capital gains tax, and reforming the non dom tax regime to make Britain more attractive to the wealthy.

Is a wealth tax a good idea for the UK?

No, say multiple economists and the Adam Smith Institute, citing failures in France, Sweden, and the Netherlands where such taxes generated low revenue and prompted wealthy individuals to leave.