Exodus Raises Concerns for Economy and Public Services

A Cause for Concern?

a significant exodus of millionaires from Britain. The report claims that the country lost 10,800 millionaires to foreign countries in 2024, more than double the number who left in 2023. This translates to one millionaire leaving the UK every 45 minutes since Labour came to power.

The study attributes this exodus to several factors, including Labour's tax policies, the growing dominance of the US and Asia in the global hi-tech sector, and the declining attractiveness of the London Stock Exchange. Additionally, the "deteriorating" state of the health system and the increasing tax burden on wealthy non-doms have also played a role.

The ASI estimates that each departing millionaire would have paid at least £393,957 in income tax per year, equivalent to the tax contributions of 49 average taxpayers. This means the millionaire exodus is comparable to the loss of 529,200 average taxpayers.

The report warns that this exodus could have "serious implications for our wider economy and public services." It also highlights the urgent need to attract more millionaires to the UK.

The Treasury, however, maintains that the non-dom reforms will not negatively impact the economy and are expected to raise £33.8 billion over the next five years. They also claim that the UK's main capital gains tax rate is lower than any other G7 European country and that the new residence-based regime is more attractive to new arrivals than the non-dom regime it replaces.

Despite the Treasury's claims, the ASI's report raises concerns about the potential long-term consequences of the millionaire exodus. The loss of high-income earners and investors could have a significant impact on the UK's economy and public services. It remains to be seen whether the government's policies will be able to reverse this trend and attract new wealth to the country.