A government minister has acknowledged that Labour's tax policies are causing wealthy Britons to emigrate, days before the Chancellor's Budget. Business Secretary Peter Kyle told Sky News that he does believe some affluent individuals are choosing to leave because of the government's tax decisions, including the closure of non-dom loopholes.
His comments follow reports that billionaire Lakshmi Mittal has moved his tax residence to Switzerland after nearly three decades in the UK. The steel magnate, whose family controls ArcelorMittal, is the latest high-profile figure to depart, joining Revolut founder Nik Storonsky and technology chief executive Herman Narula.
Kyle said he was worried whenever anyone feels they must leave the UK to succeed, but emphasised the government's efforts to attract talent through new visa schemes and investment in AI. He added that some people leaving were a consequence of the old non-dom system, while others are drawn to the UK by economic opportunities.
Official statistics show that 257,000 British nationals emigrated last year, 180,000 more than the initial estimate. Between 2021 and 2024, net emigration of Britons was 344,000 higher than previously thought, according to the Office for National Statistics.
Karl Williams, research director at the Centre for Policy Studies, described the figures as an alarming brain drain, with net emigration accelerating. The revelation comes ahead of a Budget expected to raise taxes to address a multibillion-pound shortfall in public finances.
