In a striking admission just days before a pivotal Budget, a senior Labour minister has conceded that the government's tax increases have prompted wealthy Britons to leave the country.
Minister Confirms Tax-Driven Exodus
Business Secretary Peter Kyle explicitly acknowledged the link between Labour's fiscal policies and the departure of affluent individuals. When asked on Sky News if he believed wealthy people were choosing to exit the UK because of the government's tax decisions, he stated: "I do, yes."
He further elaborated, "I'm not going to duck the fact that we have put up taxes and we've closed some of the loopholes for non-doms." This confirmation comes amidst growing concerns over a "dangerous brain drain" harming the UK's economic prospects.
High-Profile Departures and Soaring Emigration
The minister's comments follow the recent revelation that billionaire Lakshmi Mittal, a towering figure in Britain's business community, has shifted his tax residence to Switzerland after nearly three decades in the UK. He is the latest in a string of ultra-wealthy individuals seeking friendlier fiscal environments ahead of Chancellor Rachel Reeves's Budget.
Mr Mittal, often referred to as the "King of Steel," is joined by other prominent business leaders who have relocated, including Revolut founder Nik Storonsky and tech CEO Herman Narula.
Official statistics have painted a startling picture of the scale of emigration. Revised figures show that 257,000 British nationals left the country last year—a figure 180,000 higher than the initial estimate of 77,000. Over the three years from the end of 2021 to the end of 2024, the updated Office for National Statistics methodology indicates that 344,000 more Britons emigrated than previously thought.
Government Defence and Economic Concerns
While expressing worry "whenever somebody feels they have to leave the UK in order to succeed," Mr Kyle defended the government's strategy. He shifted focus to startups and scale-ups, noting that many entrepreneurs have gone to America "in their droves" due to a lack of domestic funding.
To counter this, he highlighted initiatives like the global talent task force and a global talent visa designed to attract high-skilled individuals to the UK, particularly in sectors like AI.
However, Karl Williams of the Centre for Policy Studies think tank warned that the new data points to "an alarming brain drain, with net emigration of British nationals both much higher than previously thought, and accelerating." This presents a significant challenge for Prime Minister Sir Keir Starmer just a week before a Budget expected to include further tax rises to address a multi-billion pound shortfall in public finances.
