New figures published this year suggest that the UK experienced a record level of long term emigration in the period to June 2025, alongside the largest estimated outflow of private wealth ever recorded.
International wealth data indicates that $91.8bn has been transferred abroad this year, representing the largest annual loss yet measured.
According to the Office for National Statistics, long term emigration for the year is estimated at 693,000 people, including 252,000 British nationals. The data indicates that people aged 16 to 34 accounted for the largest share of those leaving, with net emigration in this age group reported at 111,000.
Alongside the population shift, separate analysis from international advisory firm Henley and Partners suggests that the UK is expected to see a net loss of high net worth individuals in 2025, with an estimated 91.8 billion dollars’ worth of private wealth relocating overseas. Henley and Partners states that this would be the largest single year wealth outflow it has recorded for the UK since it began tracking such data.
The firm reports that destinations including the United Arab Emirates, the United States, Italy, Switzerland and Saudi Arabia are among the most common choices for relocating high net worth residents.
Economic conditions and taxation cited as factors by analysts
A number of economic research organisations have linked the trend to broader financial pressures within the UK. These include changes announced in recent fiscal statements, such as the extension of the income tax threshold freeze, increases to dividend and savings tax rates and adjustments to property taxation and pension arrangements.
The Treasury has said these measures are part of efforts to stabilise the public finances. However, business groups and labour market analysts note that employers have faced rising operational costs over the past year, including increases to wage requirements, business rates in some sectors and pension contributions.
Recent ONS labour market statistics show firms are cutting back on hiring with a fall of around 115,000 job vacancies compared with the previous year. The unemployment rate has risen to five per cent. Speaking to this newspaper, a Worcestershire businessman who has recently relocated to Dubai said:
“I should have been expanding in the UK and taking on more than 50 staff this year, but instead we have moved our operations to Dubai. I’m far from the only one. Thousands of firms are making the same calculation. The Chancellor may need to be reminded of what the Laffer Curve actually means.”
The Laffer Curve is the idea that tax revenue does not always rise when tax rates rise. If taxes become too high, people and businesses change their behaviour, meaning the government can end up collecting less money rather than more.
Indeed the Centre for Policy Studies, the Institute for Fiscal Studies and other think tanks are now warning that a combination of tax changes, higher wage costs and economic uncertainty will affect the UK’s competitiveness in attracting and retaining skilled workers and investment. These organisations note that young professionals and early career workers now make up a significant share of those choosing to leave.
Meanwhile, the Office for Budget Responsibility has questioned some of the assumptions used in recent fiscal forecasts, stating that economic modelling would need to be revisited as updated data becomes available.
Government response
The Government has maintained that its economic programme is designed to support public services, increase stability and generate long term growth. It says that tax changes have been targeted to protect lower earners and ensure that those with higher incomes contribute more.
Further analysis from the ONS, the OBR and independent research bodies is expected in due course, providing a clearer picture of how migration, investment patterns and labour market trends are evolving.
