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THE WEALTH of the richest 1,000 people in Britain has more than trebled in the decade since Tony Blair came to power promising greater fairness, according to The Sunday Times Rich List, published today.
The 260% rise in the wealth of Britain’s richest contrasts with a 120% average wealth increase for the population as a whole. Britons have benefited from the booming housing market but, unlike the super-rich, have done less well with their financial investments.
As the prime minister prepares to leave Downing Street, one legacy is a nation that has become a haven for the international super-rich. The number of billionaires living in Britain has surged to 68, up from 54 last year. About a third are from
overseas and only three of the wealthiest 10 billionaires were born here.
The richest are Lakshmi Mittal, the Indian-born steel magnate now worth £19.25 billion, and Roman Abramovich, the Russian oil tycoon valued at £10.8 billion.
“They have come for the tax, the social circles and the security,” said Philip Beresford, the compiler of the list. “At first they were concentrated in London but now they are snapping up country estates.”
Complex rules on residency and domicile status mean the super-rich from overseas can, as one accountancy expert put it, “avoid paying virtually any tax in Britain apart from council tax”. Beresford added: “There’s the cluster effect. Russians have followed Abramovich, Indians are following the Mittals and Swedes are following the Rausings.”
The richest Briton is the Duke of Westminster, whose property holdings keep rising in value.
He is worth £7 billion. Next come Sir Philip and Lady Green, owners of Bhs, Topshop and other retail chains, who are worth £4.9 billion. They are based in Monaco.
More than half of the buyers of homes in the capital costing more than £2m come from overseas, according to Knight Frank, the estate agent. “The middle classes used to live in Chelsea and they have already been forced out to Battersea,” said Liam Bailey of Knight Frank. “Now the same thing is happening to the British rich.”
However, many insist the mix of foreign incomers with homegrown entrepreneurial flair has been good for Britain. Mike Warburton, a tax expert with Grant Thornton, the accountancy firm, said: “In many ways we are a tax haven for nationals from overseas. But there is no doubt the UK has benefited enormously.
“It has attracted talent, wealth and enterprise. It has made London the financial centre of the world. The super-rich from overseas can quite legitimately avoid tax — but it doesn’t mean they don’t spend.”
The most surprising entries in the top 10 are David Khalili, an Iranian Jew, and Jim Ratcliffe, a little-known British deal maker who has built the third-largest chemical company in the world.
Khalili, 61, is based in London but was born in Iran. After national service he completed his education in America where he was fascinated by the great art collections. He began buying undervalued Islamic art, Spanish metalwork and Indian textiles. His collections may be worth £4.5 billion and with other assets, including property, he is valued at £5.8 billion.
Khalili said that he wanted to exhibit his art to promote inter-faith understanding.
Ratcliffe has risen almost without trace to become Britain’s 10th richest person. A former venture capitalist, he has made a £3.3 billion fortune by snapping up undervalued chemical companies. In 1998 he was 880th in the Rich List with a mere £20m.
His Ineos group now employs more than 15,000 people in 14 countries. Ratcliffe guards his privacy and last week declined to answer questions about his own life. “He’s a very personal man,” said a spokesman.
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I just want to mention, that I am very delighted to see corteous and polite comments on this page, despite such a contraversial subject; nowdays this is rather unusual. Thank you.
Ivan Voronov, Stary Oskol, Russia
'Men in the golden cage - the Richest'
There are many ways to be imprisoned - when you are as wealthy as this list, you have imprisoned yourselves as the Royalty, the Rock stars or the Sportsmen in their prime who are always under the scanner. This imprisonment of the Riches is worst as it lasts a long time as wealth begets more wealth and you are in gilded cage forever! But that is what we are trained to dream for but living that dream is another thing. In Indian mythology - the most earnest souls after death live a life of this exaltation but even they long to the freedom of humans which at least have the Free will to decide and act in their lives. This material abundance takes away the sheen from that human blessing so paramount in our existence. Blessed with this human virtue we still long the warmth and cosy comfort from the vagaries of life - rarely satisfied of our lot. Which is an ideal state, at the top of this pyramid or amongst the multitude...
Rajeev Mehta, Auckland, NZ
The article points out that the average wealth of the population has increased by 120% during Labour's tenure. Thats 120%! One hundred and twenty percent!
This is a shattering figure for an advanced economy. I doubt there has been a comparable period of sustained, increasing wealth in any decade since the industrial revolution.
I can only assume that those people in this comments section that attack Mr Brown's economic record are partisan, cloudy-headed or, most probably, dim.
Go on, admit it, youre thick.
Joe, Leeds,
Could the next Sunday Times supplement give a list of those workers in the UK on fixed salaries who pay the most taxes ?
Dr Patrick J. Salt, Walsall, UK
Chances are none of the super rich are likely to engage in mugging for fun. Also, they're either healthy or pay for their health care out of pocket. All in all, they probably don't strain too much any of the resources that taxes buy -- such as the police force or the NHS. The rich foreigners may pay no taxes once they settle down in London, but whoever they buy their houses from, does. When they bid up the real estate values the tax collectors rejoice. So leave the super rich alone. The UK is better off with them than it would be without them.
Gabi Huiber, Durham, NC, USA
Mr green and co should not be allowed to take moneys
earned in the UK tax free first its immoral and greedy
when the law abiding companies pay there fair share
to the tax pot hospitals etc need the money more than he
does or perhaps he funds the health of Monaco on
his own if so I apologise for my statement,but if not pay up
like the rest of us or get out of the country.
george william taylor, hull, uk
I am delighted for the 68 billionaires and all the millionaires in this list who have managed to increase their personal wealth by 20 per cent over the last 12 months, their 260 per cent increase over the last decade and for all those who get their name on the list for having at least £32 million to make it into the top 1000. What irritates me the most is the fact that so many appear to be foreign-born tax exiles in Britain and that many have, allegedly, found many ways and means of avoiding paying taxation in this country. The fact that they have so much wealth is of little consequence to this nation when they are, basically, not all contributing to this nation and society. Meanwhile Joe Bloggs et al, during this decade of a supposed Labour government, is being taxed to high heaven and in the last decade has not really seen his wealth increase at all, and the fortunes of the lowest two quintiles continues to drop. So much for a degree of equity under Blair and Broon.
Kenneth Armitage, Suffolk, England
My question to Mr Philip Beresford and his assocites that compiled the list is why do you not also class them according to ethnic origin? You already class them on age, sex, geographic location, and so forth.
Monga, London,
Totally agree with Jo. I can see the need to say that David Khalili is Iranian in the context of the article, but there is no value in mentioning that he is a Jew.
The Times is exactly the same when it reports crime. i.e. 'Black Youth arrested' but never 'White Youth'
Everton, London, UK
Dear Michael Bruce. You are so right. I do not envy the rich; I only wish I could keep the money I work for and the cost of living in the UK was proportional to the low income earners. This paper is biased. They headline futilities to draw our attention from the real issues of our times and block true debate about these issues. Democracy is dead and the right to free speach is gone with it.
Fabio C, London,
It is very largely as Michael Bruce says those who are very rich pay nothing or almost nothing and those who have nothing cannot pay.
This leaves millions of hard working moderately paid Britons subsiding the rich and the very poor whilst facing an ever growing mountain of taxes from Brown.
Add to that New Labours love of uncontrolled immigration requiring ever more money to fund health, education and housing services which the indigenous British once more have to fund. We face a desperate future if this continues.
D. Hardy, Manchester,
Whilst I do have some sympathy for Sebastian Cresswell-Turner, what about the aspiring working classes? We are all in the same boat. My father was a plasterer and my mother did a variety of part-time jobs, but through sheer hard work and dedication, they ended up with a beautiful semi-detached house in the suburbs, money in the bank and holidays abroad. Since house prices trebled in the past seven years, I find myself ossified between my last terraced house move and gaze longingly at that out of reach semi.
The solution, as Tony Blair would say is emigration, emigration, emigration.
Gary, Southsea,
Shambolic really, that the super rich are getting richer under a supposed government with socialist ideals... the average Joe on the street was better off under the tory government!
Good on you Mister Blair for looking after your friends and acquaintances from abroad so well, whilst the hard working people of Britain can't even go abroad due to your tax regime!
Andrew Roberts, Warrington, Cheshire, UK
David Khalili's jewishness is irrelevent.
Jo Boxer, London, UK
Are they all boy sopranos, the super-rich? Maybe 'treble' is erroneously used because it sounds like it has more oomph than 'triple'.
Mike Parsley, Malaga, Spain
The super well off to enjoy tax priviledges here in the UK should be encouaraged to sponsor a series of good courses for example a group of young doctors to attend poor and devasted hospiatls in Afrcia and other young people to buld those hospials which are needed.These would be be paid for the most part by a sponsoring tycoon. The same goes for schools in underveloped countries.Aroung this would be wrapped a youth voluntary service who for the most part would organise and impement this initiative though out the world where help woas most needed
Chris Chittenden
chris chittenden, midhurst, UK
Quite right. The very rich, under Brown and Blair - especially Brown; Blair has little to do with finance or home affairs - have multiplied their wealth.
In the meantime, what has happened to the very poor? Indeed, what has happened to the not quite poor - the many honest people with families to keep on low incomes? What has happened to the decent working class, to the lower middle class: that army of typists and dustbin men on whose back any modern society rests?
I do not have the impression that their standard of living has trebled. Instead they have been humiliated by being reduced to relying on various unreliable and unpredictable benefits, tax credits and so on - in a word, being made clients of the State welfare machine.
We are not envious of Mr. Mittal. He is welcome to keep his almost £20bn. We just wish that Mr Brown would let us keep rather more of the earnings (typically around a millionth of Mr. Mittal's fortune) those with a job can make.
Michael Bruce, Selby, Yorkshire