Number of millionaires fleeing UK 'spikes after Starmer comes to power' amid fears over Labour tax plans

18 January 2025, 08:32

Keir Starmer
Keir Starmer. Picture: Alamy

By Kit Heren

A record number of millionaires left the UK last year, with the exodus said to have accelerated after Labour came to power in July.

Listen to this article

Loading audio...

Some 10,800 people with liquid assets of over $1 million (£821,500) left the country in 2024, an increase of over 150% on 2023.

A total of 78 centi-millionaires (people with $100 million or more) and 12 billionaires departed the UK last year, according to New World Wealth, a research firm.

The news, coming on the back of recent turmoil in bond markets and warnings from businesses, has raised further concerns about Labour's tax plans.

Millionaires are mostly moving to other European countries such as Switzerland and Italy, or to the UAE.

Read more: British economy 'broadly flat' as GDP grows slightly in November after two months of contraction

Read more: Sacking Rachel Reeves 'wouldn't be the right thing for the country', says Jeremy Hunt - as former Chancellor pushes for March Budget

Expert calls Rachel Reeves' promise not to raise taxes again 'dangerous'

The flows of millionaires out of the country was higher in 2024 as a whole, but the increase is said to have sped up since Labour came to power in the summer.

Among the factors said to be pushing millionaires to leave are Labour's plans to remove the non-domiciled tax regime that allows people to keep non-UK income in a foreign country, in exchange for a fee.

Labour are getting rid of the non-dom regime from April, which Chancellor Rachel Reeves said would raise nearly £13 billion over five years.

Over 70,000 people with non-dom status lived in the UK in 2023.

Keir Starmer
Keir Starmer. Picture: Getty

But a survey of 700 by Oxford Economics found that nearly two-thirds were considering leaving the UK because of the change to the rules.

Economic watchdog the Office for Budget Responsibility estimates that between 12% and 25% will leave after the change comes in.

In contrast to Ms Reeves' comments, Oxford Economics thinks that axing the non-dom regime will end up costing the exchequer £1 billion a year.

Rachel Reeves
Rachel Reeves. Picture: Alamy

Non-dom representative group Foreign Investors for Britain told the Times that the move was "a monumental act of national self-harm".

David Hawkins, representing the group, added: "It appears that decisions have been made not based on the evidence but based on ideology. It’s a real worry because more and more people are leaving.

"And it’s businesses, jobs, investment, spending into the economy and tax take and philanthropy that are hit.”

A spokesperson for the Treasury said: “We are committed to tax reforms that are progressive and underpinned by fairness.

"It is right that those who can afford to, contribute their fair share to fix the foundations to provide stability and fund public services to drive growth.”

More Latest News

See more More Latest News

A woman gets her nails done.

Thousands of migrants working illegally in nail bars, car washes and restaurants have been arrested in effort to tighten UK border security.

Exclusive
Keir Starmer 'leads by example' as he becomes first PM and G7 leader to have public HIV test

Keir Starmer 'leads by example' as he becomes first PM to have public HIV test as part of goal to eliminate virus

Three Israeli Hostages Released As Part Of Ceasefire Deal

Abuse suffered by Hamas hostages during their 500 days in captivity revealed

Kaleb Cooper

Clarkson's Farm star Kaleb Cooper announces he'll be a dad to baby number three

Elements of the eucharist sacramental bread and sacramental wine.

Non-alcoholic wine and gluten-free bread cannot be used during holy communion, the Church of England has ruled.

Nelson Way, Chadderton.

Baby girl found dead in Greater Manchester home, with man and woman arrested

Police Scotland vehicle.

Man arrested and charged after attempted murder of police officer

US President Donald Trump

Trump imposes steel and aluminium tariffs, as he doubles down on plan to make Canada 51st state of America

Robbie Williams on Instagram

Robbie Williams pays £20,000 for comedian's iconic glasses and pipe

Garda

Man arrested after several people reportedly stabbed in Dublin

Chancellor Rachel Reeves.

Reeves calls for economic growth talks with bank chiefs, after 'Stagflation' warning

Reform UK Holds a Regional Conference In Wiltshire

Farage claims Conservative Party has less than 100,000 members and blasts Kemi Badenoch for calling Reform member numbers 'fake'

Foreign Ministers attend an Arab League extraordinary meeting in Cairo on October 11, 2023.

Egypt to host emergency Arab League summit after Trump announces plan to displace 1.8 million Palestinians and 'take over Gaza'

Jack Fincham.

Love Island star admits to feeling like a 'failure' after spending '£1 million on drugs, alcohol and gambling'

Westminster Abbey and Church House

Church of England meeting at time of ‘unprecedented crisis’ after scandals and historical abuse claims

The plane was forced to make an emergency landing

easyJet flight forced to make emergency landing after pilot collapses on board