Number of UK millionaires falls to lowest level since 2008 financial crisis

The number of millionaires living in the UK has dropped to its lowest level since the 2008 financial crisis, according to a report by the Adam Smith Institute (ASI). The figure stood at 442,000 millionaires in 2025, representing a 7 per cent decrease from the previous year. This marks the smallest number of ultra-high-net-worth individuals in the country since the global economic downturn began over 17 years ago. The decline is attributed to several factors, including falling asset prices adjusted for inflation, a reduced household savings rate, and the departure of high-net-worth individuals (HNWIs) from the UK. The ASI’s report highlights that many HNWIs are choosing to leave the country or avoid relocating altogether, although this trend has not been officially recorded in HMRC data. Additionally, the report notes that the UK’s tax policies, such as the potential introduction of a wealth tax and the abolition of the non-domiciled (non-dom) tax regime, are contributing to the exodus. The ASI bases its findings on data from the National Office for Statistics (ONS) and applies a method known as “constant price” adjustments to account for inflation and exchange rate fluctuations. Under this system, a “constant-price sterling millionaire” is defined as someone whose combined real and financial assets exceed £1 million, encompassing property, stocks, pensions, and savings. This approach aims to provide a consistent measure of wealth over time, independent of monetary shifts. The report argues that the UK must become a more appealing destination for HNWIs to attract and retain wealth creators. To achieve this, the ASI recommends policy reforms such as abolishing inheritance tax, phasing out capital gains tax, and revising the non-dom tax regime. Such changes, the report suggests, would benefit wealthy families while raising concerns about how the government might replace lost revenues. According to the Institute for Fiscal Studies (IFS), the government currently collects around £7.2 billion annually from inheritance tax, which accounts for less than one percent of total government revenue. However, projections indicate that this amount could increase to £8.5 billion by 2025–26 and potentially surpass £14.5 billion by 2030–31. This growth is driven by frozen tax thresholds, fiscal pressures, and the upcoming inclusion of pension funds in inheritance tax calculations. Economists and tax experts have expressed skepticism toward wealth taxes, pointing to examples from countries like France, Sweden, and the Netherlands, where such policies led to minimal tax collection and significant outflows of wealth. The ASI echoes these sentiments, stating that proposed wealth taxes would likely exacerbate the current trend of millionaire departures rather than address underlying issues. Andrew Griffith, the Conservative Party’s shadow secretary of state for business and trade, commented on the report, emphasizing the importance of retaining wealthy individuals who contribute to the tax base and foster job creation. He described the exodus of young and ambitious people as a “shameful sign.” However, the report did not include comments from the current government’s business secretary, Jonathan Reynolds, or former officials like Peter Kyle. Mitchell Palmer, an economist at the ASI, warned that the decline in millionaires should be seen as a cautionary signal rather than a positive outcome. He noted that each departing millionaire represents a reduction in available capital for local businesses, diminished international connections, and weakened entrepreneurial activity within the economy. Palmer also criticized recent proposals for higher taxes on wealth, arguing that they would worsen the situation rather than resolve it. Instead, he advocated for policies that make the UK a more attractive environment for wealth generation and retention.