The UK is leaking millionaires. Not just the yachts-and-yoga retreat variety, but the ones who actually build things - businesses, brands, jobs. According to recent reports, a net 10,800 millionaires left the UK in 2024, a 157% increase from the previous year. That’s the biggest wealth drain the UK has ever seen, second only to China.
And yet, the political narrative seems to be: Good riddance.
But let’s be clear - this isn’t just a story about tax-dodging billionaires fleeing to Monaco. It’s about the slow suffocation of business ambition in the UK, the erosion of our attractiveness as a place to start, scale, and grow companies. If the people who create jobs, invest in new ideas, and push industries forward start packing their bags, the real loss might not just be their tax contributions - it could be future prosperity.
A Policy Problem Disguised as a Moral Victory
One of the most cited reasons for the exodus? The government’s decision to scrap the non-domiciled tax regime. This rule, previously allowing foreign nationals to avoid UK tax on overseas income, made the UK a magnet for global entrepreneurs and business owners. Removing it seems hasn’t just fuelled the exodus, it’s sending a signal that Britain might no longer want to be an international hub for high-net-worth individuals.
But that’s just part of the issue. Entrepreneurs aren’t just leaving because they personally don’t want to pay more tax. They’re leaving because the business climate is turning hostile.
The UK’s corporation tax is now one of the highest in the G7 at 25% - a stark contrast to Ireland’s 12.5%, or the UAE’s 9% for SMEs and 15% for larger corporations.
Regulation bloat is making it harder for SMEs to scale, drowning businesses in red tape that favours large, established players.
Political uncertainty - whether it’s over Brexit trade deals or future tax hikes - could make long-term business planning nearly impossible.
And what happens when the environment becomes less welcoming? Entrepreneurs could vote with their feet. They might not sit around hoping things get better - they could move to places where they can build their businesses without being penalised for success.
The Potential Impact on New Businesses and Economic Growth
My concern doesn't just lay with existing millionaires leaving, it’s also about the lack of new ones being created.
High-net-worth individuals aren’t just tax contributors; they’re job creators, investors, and ecosystem builders. Their presence alone attracts more talent, more innovation, and more opportunities for ambitious startups. If they leave, that entire economic flywheel could slow down.
Fewer angel investors: Early-stage startups thrive on private investment. If major angel investors and VCs relocate to tax-friendly regions, funding for UK startups might dry up.
Brain drain: If successful founders leave, they take their networks, experience, and mentorship opportunities with them. New entrepreneurs might no longer have access to the same level of support.
Devaluation of UK brands: Without access to funding and growth opportunities, British brands could increasingly struggle to scale - leaving the door open for international competitors to dominate.
The UK could increasingly become a place where ideas start, but don’t stay.
The UK brand: Are We Selling the Wrong Story?
For decades, the UK’s business brand was built on stability, innovation, and global connectivity. London was Europe’s Silicon Valley - attracting the best and brightest, offering access to world-class talent and capital.
Now? The narrative might be shifting. The UK could be coming across as a country that resents wealth, penalises success, and is indifferent to business growth. That’s a potentially disastrous strategy.
No successful organisation survives by alienating its biggest champions. If you told your most loyal customers, "We don't need you, and actually, we don’t really like you anymore," how long would they stick around? That could be exactly what the UK is doing to its most successful businesspeople.
What’s worse is that while big brands might survive, new businesses might not even get the chance to establish themselves. Established multinationals can move headquarters, shift profits overseas, or negotiate tax incentives. But for UK startups, these aren’t options. They could be stuck with higher costs, less funding, and a government that might seem to think entrepreneurs are the enemy.
The Future: Can the UK Reverse the Damage?
The government’s problem might not just be tax policy - it could be perception. Right now, the UK might look like it’s actively pushing away wealth and entrepreneurship, and in a global economy, that’s a dangerous place to be.
Is there a glimmer of hope however?
Rebuild Trust with Entrepreneurs: The government needs to stop treating business success as something to be punished. Creating policies that incentivise innovation, rather than ones that drive it away, could help.
Make the UK Attractive Again for Investment: Lowering corporation tax, creating tax breaks for angel investors, and encouraging high-net-worth individuals to keep their capital in the country might be necessary.
Tell a Better Story: Right now, the UK is positioning itself as a bureaucratic, anti-business state. It needs a compelling reason for entrepreneurs to stay - whether that’s through incentives, infrastructure, or even just a clearer long-term vision.
Because if we don’t fix this? The UK might not just lose millionaires. It could lose its place as a global leader in business, innovation, and entrepreneurship. And that’s a price none of us can afford to pay.
It might be easy to paint this as a battle between the ultra-rich and the everyday taxpayer. But it isn’t. This is about ambition. If you create a system that punishes success, what you might really do is kill aspiration. You could make people think twice about taking risks, building businesses, or even staying in the UK at all. To be clear, this isn't an attack on any one politcal party, but is an issue the current goverment needs to be taking very seriously. If the UK becomes a place where ambition isn’t rewarded, what’s left? A slow decline into economic mediocrity. The exodus has begun, but whether it’s reversed or cemented as the new reality now rests in the hands of the wealthy decision-makers in Parliament - many of whom are unlikely to feel its consequences firsthand.
Adam Arnold
Founder and Chief Consultant at Brandality
