For richer, for poorer…2.2% dip in millionaires
THE number of millionaires in the North West has dipped by 2.2% but the region is richer than it was a year ago.
The annual Barclays Prosperity Map says the improvement is despite uncertain economic conditions caused by volatile stock markets, China’s slowdown and the lead up to Brexit.
Barclays’ research uses factors including numbers of millionaires, average annual pay, the percentage of households giving to charity, business growth rates and exam scores to generate a unique ‘Prosperity Index Score’ for each UK region.
The millionaires count in the North West fell to 44,000 from 45,000.
With 690,000 people in the UK now being worth at least seven figures, this is the equivalent of one in every 67 people being a millionaire.
Although this is a slight dip in comparison to 2015, falling by 3.8%, the longer term trend paints a better picture, with the number of millionaires increasing by 34% since 2010.
Even without London and the South East, the rest of the UK has shown an increase of 85,000 additional millionaires, up by 31% since 2010.
The research revealed that two key economic indicators – GDP per capita and average earnings, are contributing to rising prosperity in the North West.
The region saw an 8.1% year-on-year increase in GDP per capita, a larger increase than that seen in London or the North East in the same time period.
The North West also saw an increase in average annual earnings of 3%, rising to £25,104, accompanied by the biggest fall in unemployment seen anywhere in the country at 1.8%.
SME activity in the North West is also on the up – a strong indicator of rising prosperity.
The region came in joint third place, only behind Scotland and London, for increase in SME turnover, largely driven by very strong performance in Manchester, where turnover grew by 15% – the second highest city in the UK, after Bournemouth.
Paul Swinney, principal economist, Centre for Cities, said: “Entrepreneurship is an important marker of prosperity, not just because of the businesses themselves and the revenue and jobs they generate, but because of what they represent – an innovative and thriving environment where people have the confidence to trial new ideas.”
Steve Renfrew, regional director, North West Region, Barclays Wealth and Investment Management, said: “It is very encouraging to see that prosperity in the North West is on an upwards trajectory, with our region’s innovative entrepreneurs playing a vital part in supporting our growth.
“This research is evidence of what a great place the North West is to live and work. We can feel confident that these signs of growth show that not only is our region still ‘open for business’, but that we also have a really important role to play in the prosperity of the UK as a whole.”
