I’m currently in Norway – stunning country – but it got me thinking. The population of Norway is only 8% of the UK’s yet its per capita wealth significantly surpasses ours, driven by its lucrative oil and gas industry and supported by the world’s largest sovereign wealth fund which is valued at over $1.4 trillion. This fund has secured Norway long-term intergenerational wealth though the balancing of fossil fuel activities alongside a commitment to sustainability. The country continues to explore new oil and gas projects and invest in renewable energy technologies. The wealth fund, built from oil revenues, is now funding green initiatives whilst contributing to a higher standard of living for its population. Only a small portion of the fund returns are used to fund the Norwegian government’s budget, preserving wealth and avoiding an overreliance on it.
Now contrast this with the UK, which has no real policy of long-term saving, tending to use funds for immediate needs such as addressing social welfare and supporting economic policy. All important things of course, but perhaps not getting us any further forward. Labour’s pledge to stop issuing new oil and gas licences in the North Sea, whilst also earmarking billions of pounds of public money to net zero initiatives over the course of this parliament is one which will continue to drive more polarised debates about balancing our energy security with ongoing climate commitments.
With our continued lack of vision, is it any wonder that people are leaving the UK with research from the Adam Smith Institute reporting a growing exodus of millionaires – a trend which many have coined ‘WEXIT’. In 2024 alone, the UK saw 10,800 millionaires leave, a financial blow equivalent to losing 500,000 average taxpayers. WEXIT raises concerns about the UK’s economic competitiveness and its ability to retain high-net-worth individuals. However, it arguably also creates an opportunity for the government to rewrite the rule book, creating targeted policy changes to reattract talent and capital.
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