A lot of millionaires are planning to leave the UK this year because the left-wing Labour Party government of Sir Keir Starmer is likely to tax them too much.
While Rishi Sunak’s Tory government raised taxes to their highest level since World War II, a big part of this was to pay off debts incurred during the coronavirus lockdowns. Many people think that the British government will try to get even more money in the fall budget of the Labour government, with capital gains and inheritance taxes being two likely targets.
According to a story in The Times of London, a company that helps wealthy people move abroad said that they got 69% more calls from wealthy people wanting to leave the UK in August, the month after Prime Minister Starmer took office.
Henley & Partners, a similar business, said that a record 9,500 millionaires are expected to leave Britain this year. That’s more than any other country except Communist China.
It found that 4,200 millionaires left the country in the first five months of the year, which is when most people thought Labour would win the election. Another 5,300 millionaires are likely to leave by the end of the year. Low-tax places like Dubai, Singapore, and Switzerland are popular stopping spots for businesspeople and rich people.
People who are creative and spend lots of money are likely to leave, which has made people worry that the upcoming tax increases might not work with the Laffer Curve and not bring in enough money for the government.
Sir Keir Starmer has said that the people “with the broadest shoulders” should take the most weight. However, if a lot of rich Britons leave the country, Labour, which is meant to be the party of the working class, might have to raise taxes on middle-income people even more to pay for it.
Reports say that the government is already thinking about putting so-called “sin taxes” on sweets, cakes, and chips, as well as a tax on glass bottles. These changes would have the biggest effect on the poorest people, since they spend more of their money on food. Not only would this hurt the people already hurt by Labour’s plans to cut winter fuel support for seniors, but it would make things even worse.
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