How the departure of wealth and talent affects business growth, investment, and innovation.  

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When you picture the United Kingdom, you might think of tradition, innovation, and a thriving business ecosystem. Yet, beneath the surface, a shift is taking place. Over 10,000 millionaires left the UK in 2024, doubling the previous year’s numbers. This isn’t just a trend—it’s a wake-up call for entrepreneurs and policymakers.

Why Are They Leaving? 

Tax reforms are front and centre. The recent abolition of the non-domiciled (non-dom) tax regime has prompted many wealthy individuals to look elsewhere. Countries like Italy, Portugal, and Switzerland offer more attractive tax structures. Add a growing sentiment that the UK is becoming less business-friendly, and you have a recipe for relocation.

Even among my peers, there’s chatter about the impact of business confidence dropping. When policies seem to punish success, it’s natural for entrepreneurs and investors to seek opportunities in regions that celebrate ambition.

How Does This Affect Entrepreneurs?

The departure of wealth from the country is more than a headline statistic. It’s about the loss of key players—investors, mentors, and innovators—who are integral to the startup ecosystem. Think of the angel investors who fund risky but promising ventures or the seasoned entrepreneurs who provide mentorship. When they leave, opportunities for new businesses shrink.

The UK faces what some experts call an "investment gap." For startups, especially those in tech and innovation, this means fewer funding rounds, limited resources, and slower growth potential. 

Let’s Look at the Numbers

• 10,800 millionaires left in 2024 alone
• Equivalent to losing the tax revenue of over 500,000 average UK taxpayers
• Preferred destinations: EU countries, the US, UAE, Australia, and New Zealand

(Source:IMI Daily)

Learning from Global Trends

Countries like the UAE have leaned into their pro-business narrative by offering tax-freezones and incentives for innovation. I’ve witnessed this first hand living in Dubai for over two decades. The message is clear: “We’re open for business, and we value what entrepreneurs bring to the table.”

The UK needs to reflect on what made it an economic powerhouse in the first place—its ability to attract and retain global talent. Could revisiting tax policies or providing greater support for startups reverse the trend?

Reclaiming Entrepreneurial Strength

Here are a few steps the UK could take to turn the tide:

1. Competitive Tax Policies – Make the UK attractive to residents and foreign investors
2. Business-Friendly Incentives – Support small and medium enterprises with grants, tax breaks, and innovation hubs
3. Mentorship and Growth Programs – Encourage high-net-worth individuals to reinvest in the local economy through angel networks and partnerships

A Personal Reflection

I have collaborated with entrepreneurs across diverse markets at Jpd. The belief that innovation merits reward, rather than penalisation, distinguishes flourishing ecosystems from stagnant ones. Supporting entrepreneurs involves more than just financial aid; it entails cultivating environments where idea scan flourish and success motivates others.

Final Thoughts

The UK still has the potential to be a global leader in entrepreneurship, but it requires a reset. Losing wealth and talent is a challenge, but it is also an opportunity to build something stronger—an economy that values creativity, risk-taking, and growth.

As business leaders, we must ask ourselves: Are we investing in our future or allowing short-term obstacles to dictate our destiny? The next move is ours to make.

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