Member Article

North East sees largest increase in number of millionaires in the country

The number of millionaires in the North East has increased by 50% to 12,000 since 2010 as the region shows the biggest growth of anywhere in the country, according to the latest report from Barclays.

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 unique ‘Prosperity Index Score’ for each UK region.

Despite the strong potential for future growth in the North East, the region still ranks as the least prosperous in the UK.

Almost 10,000 new businesses started in the North East in 2013, and the region has the UK’s highest ratio of business births to deaths, second only to London, demonstrating the strength of the business environment in the region.

The next generation in the North East also showed signs of promise for driving prosperity, with 73% of pupils in the region achieving at least 5A*-C grades at GCSE level, the strongest academic results of any region in England.

Andrew Miller, Regional Director, North East, Barclays Wealth and Investment Management, said: “Although the North East 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. As well as the impressive growth in the number of millionaires, particularly encouraging is the region’s strong performance in business start-up survival rates, which is testament to the growing business confidence we have seen in the region in recent months.

“It’s also really positive to see the North East’s students performing so strongly in exams. What is important now is that we make sure that there is an incentive for these students to stay on in the North East when they go into work – we’ve got to create the opportunities so we don’t lose our best talent to London or the other big cities.”

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.

Akshaya Bhargava, CEO, Barclays Wealth and Investment Management, said: “The results of the Barclays UK Prosperity Map give us reason for optimism. The UK is becoming more prosperous, with every region having grown in affluence since 2010. It is also encouraging to see that regions and cities are starting to close the gap with London in terms of prosperity, particularly in the North East, where business survival rates are behind only London. We need to collectively support entrepreneurship and educational attainment in regions outside of London and the South East so that they continue to grow and prosper.”

This was posted in Bdaily's Members' News section by Ellen Forster .