Last year, nearly 11,000 millionaires left the UK, costing taxpayers significantly. This trend raises concerns about the impact of Labour’s tax policies.
London: Last year, around 11,000 millionaires packed their bags and left the UK. That’s like losing half a million taxpayers! Crazy, right?
This number is double what it was in 2023. Wealthy folks are trying to dodge Labour’s heavy tax plans. It’s all about avoiding that tax raid.
In 2024, 10,800 millionaires skipped out before Rachel Reeves’ tax changes hit. The Chancellor’s Budget raised taxes by £40 billion, which really shook up business confidence.
According to the Adam Smith Institute, each millionaire who left would have paid about £393,957 in income tax yearly. That’s a lot of cash, equal to what 49 average taxpayers would pay!
Andrew Griffith, the shadow business secretary, told the Telegraph that entrepreneurs are fleeing this socialist tax raid. He’s worried about the economy sinking under Labour’s policies.
Millionaires are also leaving because of the new non-dom tax rules starting in April. They won’t be completely off the hook for taxes on foreign earnings anymore.
Plus, the recent 20% VAT hike on private school fees has families leaving too. Some schools are even shutting down because of it.
This week, billionaire Ray Dalio warned that the UK is heading for a “debt death spiral.” He pointed out that the bond market is making government borrowing more expensive.
Dalio blamed Rachel Reeves’ Budget for the economy’s struggles. He said rising interest payments and higher borrowing needs could create a nasty cycle.
He told the Financial Times that it looks like a debt death spiral is forming. More borrowing, less spending, or higher taxes could be on the horizon.
