A clear sign of the way in which the UK economy has recovered since the economic crisis which hit in 2008 is that the number of millionaires based in the United Kingdom has increased dramatically since 2010. According to the Barclays UK Prosperity Map, there are now over 715,000 millionaires in the country, an increase of 41% from 508,000 over the past five years.
The highest concentration of millionaires is in London, where 191,000 live. This is hardly surprising. Despite plans to create “a Northern powerhouse” for business, and of devolving ever greater political power not only to Scotland, Northern Ireland and Wales, but also to some English regions, London remains a huge magnet for business and for life.
At around eight million, the population of the capital dwarfs that of every other city in the UK. The second biggest city, Birmingham, has a population of just over one million; and even such major centres as Manchester and Glasgow are each not much over the half a million mark.
But as far as the millionaire population goes this imbalance is being redressed, albeit slightly. Even though the number of millionaires in London is more than in Scotland, Northern Ireland, Wales and the North of England combined, nearly half of the new millionaires created in the last five years live outside London and the South East.
This is partly because every region in the UK is more affluent than it was five years ago, according to the research which takes into account household wealth, gross domestic product (GDP), exam results, charitable donations and entrepreneurship.
Barclays has produced a list of the Top Ten cities in the UK by its prosperity index, which makes for interesting reading:
1. London
2. Reading
3. Cambridge
4. Birmingham
5. Bristol
6. Leeds
7. Cardiff
8. Manchester
9. Liverpool
10. Newcastle
Reading and Cambridge have built reputations as centres for start-up business; Cambridge is a major global centre now for hi-tech business. The Welsh capital, Cardiff, has seen major re-generation in recent years, reflected in its seventh position. That Leeds, Manchester and Liverpool feature in the Top Ten is a sign that the much talked-of “Northern powerhouse” is beginning to bear fruit. And Newcastle’s tenth place will encourage those who are looking for increased prosperity in the North East. What will disappoint some is that no Scottish or Northern Irish cities make it onto the list.
The overall message, though, is that these figures clearly show not only that the number of millionaires in the UK has increased significantly, but the strength of the UK economy will continue to make it an attractive place for investment for the foreseeable future.
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