As Britain continues along a path of austerity and cost cutting, new research reveals the UK is still home to more than 250,000 millionaires who collectively represent £1.28 trillion of net wealth.

London-based CoreData Research UK’s latest research on Britain’s wealthier individuals has identified 284,317 individuals/households with more than £1 million in net assets (excluding an individual’s/family’s primary place of residence).

In terms of Britain’s total population, this means 1.1% of UK households are millionaire households.

Some may argue a large number of millionaires reflect a clear disparity in a society, however many of Britain’s modern day wealthy are self-made and have become so through creating and running successful businesses, which bodes well for the economic health of the nation.

However Britain is clearly facing a number of fiscal challenges as global markets and developed economies continue their slow but sure journey away from the financially doomed abyss of 2008 and early 2009.

The number of millionairesis partly a reflection of the economic opportunity that exists in modern Britain and should allow others to seize their own chance to grow a business, be successful and boost economic growth.

After running for cover during and after the credit crunch, Britain’s wealthy are now actively re-invested in a variety of asset classes.

The majority of assets are held in shares (34.2%) – either in individually held company shares (18.7%) or in managed funds (15.5%).

A significant third (32.2%) of millionaires’ wealth is tied up in direct property (excluding their main residence)

The average level of wealth for those with more than £1 million is £4.5 million; however this figure is masked slightly by the fact Britain is home to a reasonable number of Ultra High Net Worth Individuals (those with more than £30 million of net investable assets).

The majority of UK millionaires reside between the £1million and £2 million band – some 55% of all millionaires.

The average millionaire holds 13.2% of their wealth in cash, low risk money market funds account for an average 6.5% of assets.

Managed funds (Bonds) account for 5.4%, while Exchange Traded Funds (ETFs) and Listed Property have only a marginal exposure with 2.3% and 0.9% of wealth.

Some 5.4% of wealth is held elsewhere in things like collectables, antiques and art.

The number of millionaires, while only a symbolic notion, reflects that the incentive to succeed in business can drive the economic growth of the nation.

The research is a reminder that the economic heart of the nation is the vast number of small to medium businesses that exist nationwide.

As long as the Government prioritises reducing the many disincentives to launching new businesses and start-ups then the economic success of the country will be assured.