NW millionaires on the up
THE North West is home to 45,000 millionaires – a 41% increase since 2010, according to new research from Barclays.
The figures, up from 32,000 in 2010, mean that the number of millionaires in the North West has grown at the same rate as the UK national average.
However, the North West only ranked eighth out of 12 UK regions, ahead of just Yorkshire, Scotland, Wales and the North East.
The Barclays UK Prosperity Map uses factors including numbers of millionaires, average annual pay, the percentage of households giving to charity, business survival rates and exam scores to generate a‘Prosperity Index Score’ for each UK region, providing a deeper view of regional financial health than single measures of wealth such as assets, investments and the location of luxury services.
Although falling below average on measures such as wealth and GDP, the North West performed strongly in other areas such as exam achievements, number of hours worked and ratio of business births per deaths, ranking in fourth place on all of these measures, and above the national average.
Experts contributing to the map also highlighted the impact that the government’s ‘Northern Powerhouse’ policy would have on driving further prosperity in the area in the coming years.
Liverpool in particular showed signs of great potential for driving prosperity, with the highest ratio of anywhere in the country of business births to deaths – a good indication of the nurturing entrepreneurial environment in the city. It is also the top city for exam results, with 73.6% of pupils achieving 5 or more grades A*- C.
Steve Renfrew, regional director, the North West, Barclays Wealth and Investment Management, said: “Although the North West has some way to catch up with other regions in terms of prosperity, the results of this research are indicative of a region on an upward trajectory.
“Entrepreneurialism, innovation and a hard-working attitude are in the DNA of people in the North West and as a result of this there is a really exciting buzz around business in the area – and I’m not just talking about the traditional hubs of Manchester and Liverpool. Media City in Salford is a great example of somewhere that is not only creating a hub for local business, but also bringing in talent from London into the region.”
In the rest of the UK, booming house prices and returns in equity markets, in addition to higher wages and employment rates have resulted in every UK region becoming more affluent, and has driven a 41% increase in numbers of millionaires since 2010.
Longer-term, growth in millionaires is expected to return to more normal levels, with a 9% increase in the UK expected by 2025, in-line with GDP growth.
Karen Campbell, head of tax in the North West at business advisers Grant Thornton, said: “It’s a little surprising that Manchester and Liverpool do not feature more prominently in the Top 10 – given the number of entrepreneurs here creating new wealth and the economic diversity of our region.
“The wider context of these figures is worthy of reflection. It has been well reported that the UK is the only G7 country to record rising wealth inequality in 2000-14. The rich in the UK are becoming richer faster than ever – and irrespective of whoever is in power. As a society we do need more people to prosper and share in the gains of a recovering economy.”
