At the risk of understatement, that approach will undermine U.K. prosperity and also lead to less revenue for the government.
To understand the magnitude of the U.K.’s self-inflicted wound, here are some excerpts from a report by Andrew Ellson in the London-based Times.
A record number of millionaires have left Britain since Sir Keir Starmer came to power and there is growing concern that Labour’s tax plans are exiling international investors and damaging the economy. …In total Britain lost a net 10,800 millionaires to migration last year, a 157 per cent increase on 2023, meaning it lost more wealthy residents than any other country except China. …The outflow…was especially large among the UK’s richest residents. Some 78 centi-millionaires and 12 billionaires left the country last year. …the exodus accelerated after the general election was called. Since that moment one dollar millionaire has left Britain every 45 minutes. …Oxford Economics says the plans will in fact cost the exchequer nearly £1 billion a year because so many non-doms will leave — and that is before the impact of lower VAT receipts and other taxes is included. …The Adam Smith Institute estimates that by 2035, the non-dom reforms will make the economy £1.3 billion smaller than it would otherwise have been, which could lead to over 23,000 job losses by 2030.
A logical person, seeing all this evidence, would conclude the policy is a mistake.
But it appears the Labour Party isn’t motivated by logic .
Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.
