More than 69,000 workers left the UK last year, according to new data that has prompted a warning to Andy Burnham ahead of the Autumn Budget. The figure has almost doubled since the Labour Party won the General Election in 2024.
Data obtained through a Freedom of Information request by accountancy firm UHY Hacker Young shows that 69,300 taxpayers told HMRC they were leaving the UK after filing a P85 in 2025/26. This is an increase of over 30,000 since the Labour Party won the General Election in 2024.
Experts point to tax burden
Experts believe that higher taxes on wealth and frozen personal tax thresholds have contributed to the rise in the number of workers leaving Britain. While many of those choosing to leave are high-profile millionaires, experts also say the rising tax burden is pushing middle-income professionals and younger workers overseas for a better deal.
Neela Chauhan, from UHY Hacker Young, said: "That’s as true for working people who do not consider themselves wealthy as it is for business owners. The Government must remember that increasing taxes will push more people to leave the country."
Tax changes under Labour
The Labour Party has introduced a number of tax rises under former Chancellor Rachel Reeves and current Prime Minister Andy Burnham. The government previously increased rates for capital gains tax and introduced property-related levies including the mansion tax.
Labour also scrapped the 200-year-old "non-domiciled" tax status which removed the "remittance basis" rule. This previously allowed wealthy UK residents with permanent homes abroad to avoid UK tax on overseas earnings.
Warnings over budget deficit
Ed Wood, of wealth manager Rathbones, said: "If there are no alarm bells going off in the Treasury at these numbers, then there should be. There is a big budget deficit, the Chancellor doesn’t have anything to play with, and yet taxpayers are leaving. The country cannot afford to be pushing them out."
A government spokesman said: "The Chancellor has made wealth creation one of his top priorities – and the UK remains an attractive destination for talent and investment with a competitive and stable tax system, deep capital markets, world-class universities and a highly skilled workforce. Caution should be taken with data for years affected by the Covid-19 pandemic and the subsequent increase following lockdowns."
