The recession and the property slump have knocked ?155 billion from the wealth of the richest thousand people in Britain from The Sunday Times Rich List 2009. That is equivalent to about a third of their fortunes, and is the biggest fall in a single year since the list began in 1988.
The fall in property prices has hit many of those on the list, including the richest Briton and third-placed on the list, the Duke of Westminster. His fortune is down to ?6.5 billion, down by ?500 million. The Duke has properties in Belgravia and Mayfair in London.
Above the Duke in the list are Lakshmi Mittal and Roman Abramovich. Mittal has lost ?16.9 billion due to the collapse of the world steel market ? his fortune down to ?10.8 billion. Chelsea owner Abramovich is down by ?4.7 billion to ?7 billion.
The 75 billionaires in 2008 have been reduced to just 43 in 2009, with the top 100 on the list losing a combined ?92 billion. Only three managed to increase their wealth.
The increase in tax rate for top earners to 50p in the pound in last week?s budget is unlikely to go down well with Britain?s rich. Two of Britain?s entrepreneurs have said they are leaving the country.
Hugh Osmond ? with interests in insurance and pub chains ? is moving to Switzerland. Peter Hargreaves ? a founder of a financial advice firm ? is heading for the Isle of Man or Monaco.
How the loss of wealth of the rich and the fleeing of some will affect the UK property market is unclear, but money moving out of the country cannot be a good thing.
Founder of Waterstone?s book shops, Tim Waterstone, described the 50 per cent tax as a ?spiteful political move? and a ?disincentive to entrepreneurs?.
