Capital's wealthiest still looking for upturn in fortune

Capital's wealthiest still looking for upturn in fortune

Capital's wealthiest still looking for upturn in fortune

First published in Features by

MORE than 70 per cent of London's millionaires have seen no improvement in their finances in the last 12 months - and they aren't expecting that statistic to change any time soon.

According to research from investment specialist Skandia, 27 per cent claim their families are worse off than last year while only 20 per cent report a slight upturn in their finances.

In addition, despite talk of a feel-good factor around the London 2012 Olympics and Queen's Diamond Jubilee, only a quarter of those surveyed were looking ahead to the next year with confidence.

A breakdown of the banking system, a stock market crash and problems with the Eurozone are the biggest fears for the capital's most wealthy, according to the latest research, published on the eve of this week's Budget.

Skandia's UK head of investment strategy Graham Bentley claims the findings highlight the need for Chancellor George Osborne to show courage and eliminate the 50p tax rate on those with incomes over £150,000.

Reports claim he is ‘determined’ to slash the top rate of income tax to 40p this week as a dramatic signal of his commitment to building an enterprise economy.

But Coalition partners remain divided and are demanding new taxes on wealth in return - a move, it's claimed, could lead to a wealth drain away from London.

"Economic policies that attack the UK's higher earners echo those of the Labour government of the late 1970s and are fuelling their discontent about living in Britain," said Mr Bentley.

"Unless this Government is completely comfortable with a 'wealth drain' from the UK it should show courage and abolish the 50p spite-tax."

Findings also reveal that just over 45 per cent of the capital's millionaires would also consider moving to another country.

France, the USA, Spain and Australia are the most popular emigration destinations and the biggest reasons for wanting to move are the cost of living and high taxation.

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