In a remarkable admission, a senior Cabinet minister has conceded that the Labour government's tax policies are actively driving wealth and business creators out of Britain.
Minister Confirms Tax Impact
Business Secretary Peter Kyle stated he would not 'duck' the consequences of the increased tax burden and the decision to abolish non-dom status. The comments came during a series of interviews as the government prepares to unveil its fateful economic package.
Mr Kyle expressed concern about reports that billionaire former Labour donor Lakshmi Mittal has become the latest high-profile figure to leave Britain, reportedly relocating to Dubai and registering as a tax resident in Switzerland.
'It's a worry for the government whenever anyone needs to leave the UK to succeed,' Mr Kyle told Sky News. When pressed on whether he acknowledged that 'some of it is because of the tax decisions of this Labour government', the minister responded unequivocally: 'I do.'
Economic Warnings Mount
The minister's extraordinary admission comes amid growing concerns that billionaires and other wealth creators are departing to avoid being targeted by Chancellor Rachel Reeves' tax policies.
Adding to the government's challenges, former Bank of England chief Andy Haldane warned that the 'fiscal fandango' around Ms Reeves' plans has caused economic 'paralysis'. Mr Haldane, who worked at Threadneedle Street for more than 30 years, stated that 'costly' speculation about tax rises had caused growth to 'flatline' in recent months.
The head of the CBI, Rain Newton-Smith, joined the criticism, pleading with Ms Reeves to 'change course' and avoid inflicting more cost pressure on UK firms. At the business body's annual conference, she urged the government to make 'hard choices' on spending instead of inflicting 'death by a thousand taxes'.
Government Response and Apology
Despite acknowledging the exodus, Mr Kyle defended the government's approach, pointing to initiatives like the global talent taskforce and global talent visa designed to attract high-skilled individuals to Britain.
'Some people are going to leave because they were here because of the way that the old non-dom system works,' he said. 'There are other people who are coming to this country because of the excitement that's in our economy at the moment.'
The Business Secretary also apologised for the chaotic briefing surrounding the contents of the upcoming Budget, acknowledging that the speculation was damaging economic confidence. 'I can apologise for the fact that there has been so much speculation,' he told Times Radio. 'I understand that it's a distraction.'
Mr Kyle sought to redirect attention to what he described as positive economic developments, including schemes lowering energy costs for businesses, the delivery of an industrial strategy, and progress on controlling inflation and interest rates.
