London witnesses an exodus of millionaires

By Hermoine Macura-Noble
Special to The Times Kuwait

A new study has revealed that nearly half of the UK’s millionaires are considering leaving the country over fears the new Labour government will hike taxes and introduce unnecessary regulations.

A total of 47 percent of millionaires said they were now more likely to leave the UK than before the general election, according to a survey of 262 UK residents with net assets of at least £1 million by Arton Capital.

Historically a hub for global wealth and a preferred residence for millionaires, London has recently seen an exodus of its affluent residents. This shift is primarily attributed to the Labour Party’s recent political victories and policy proposals, which have raised concerns among the wealthy about potential changes to taxation, property regulations, and broader economic policies.

According to the study, around 83 percent stated that they were concerned about potential regulatory changes that may negatively affect their business, while 89 percent said they were worried about the future of the UK economy. One of the primary reasons millionaires are leaving London is the fear of increased taxation under a Labour government.

The Labour Party has traditionally advocated higher taxes on the wealthy to fund public services and reduce income inequality. Their proposals often include higher income tax rates for top earners, increased capital gains tax, and the introduction of wealth taxes. While popular among a significant portion of the electorate, these measures have caused concern among high-net-worth individuals who see their financial positions being threatened.

“It’s clear that wealthy UK citizens are now looking overseas for their business and lifestyle needs… The new British government has its work cut out to reassure wealthy citizens that it does not wish to create a hostile regulatory and tax regime for its most upwardly mobile citizens,” explained Armand Arton, the founder of investor migration consultancy Arton Capital.

London’s property market, one of the most expensive in the world, is another factor driving millionaires away. Labour’s plans to introduce more stringent property taxes, including a potential ‘mansion tax’ on high-value homes, have made property ownership in London less attractive to the wealthy. The fear of falling property values and increased ownership costs are prompting many to sell their assets and relocate to more tax-friendly environments.

Beyond financial concerns, quality of life issues are also influencing the decision to leave London. Many people are now considering other cities or countries that offer a better lifestyle. Cities like Geneva, Monaco, and Dubai, which provide favorable tax regimes and high living standards, are increasingly attractive to London’s wealthy elite.

The exodus of millionaires from London following Labour’s recent political successes highlights the complex relationship between politics, wealth, and urban dynamics. While Labour’s policies may resonate with many voters, they also prompt many high-net-worth individuals to reconsider their future in the UK. This trend poses challenges for London, a city that has long prided itself as a global financial center and it raises crucial questions about the future of wealth and inequality in the UK.

By Hermoine Macura-Noble
The first Australian English speaking News Anchor in the Middle East. She is also the Author of Faces of the Middle East and Founder of US-based 501c3 charity – The House of Rest which helps to ease the suffering of victims of war. For more from our Contributing Editor, you can follow her on Instagram, here.