Rachel Reeves lost out on the equivalent of 529,200 taxpayers last year. (Image: Getty)
Nearly 11,000 millionaires fled the UK to overseas countries last year, which was the equivalent to losing half a million taxpayers, according to new research.
The figure stands at double the amount who left in 2023, as wealthy Brits left to avoid Labour’s tax-heavy Budget.
2024 saw 10,800 millionaires avoid Rachel Reeves’ tax raid on businesses, non-doms and private schools. The Chancellor’s October Budget saw £40 billion of tax hikes which sparked a wider collapse in business confidence as investors warned of a “debt death spiral” this week.
New analysis by the Adam Smith Institute (ASI) shows each millionaire who left Britain last year would have paid at least £393,957 in income tax per year. This is equivalent to 49 average tax payers’ income tax, totalling to a loss of 529,200 people.
10,800 millionaires fled the Chancellor’s Budget in 2024. (Image: Getty)
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Andrew Griffith, the shadow business secretary, told the Telegraph: “Our entrepreneurs and businesses are fleeing this socialist Government’s tax raid in droves.
“This research shows that Rachel Reeves’s Marxist maths has put the economy in real danger of drowning in Labour’s tepid bath of decline. Unless she changes course, every taxpayer will be getting soaked as a result.”
Millionaires are leaving ahead of the non-dom tax regime taking effect in April. Instead of being entirely exempt from paying tax on money made abroad, wealthy individuals will have a four year limit on this.
The 20% VAT increase on private school fees, introduced earlier this month, has also seen families leave with several schools claiming they are closing due to the hike.
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Shadow business secretary Andrew Griffith warns the economy is in a “tepid bath of decline” (Image: Getty)
This week, billionaire Bridgewater founder Ray Dalio warned Labour that the UK is heading for a “debt death spiral”. He said the turbulent UK bond market, known as gilts, have sharply increased the cost of government borrowing.
The hedge fund tycoon has blamed Rachel Reeves’ Budget for the struggling UK economy, saying the combination of rising interest payments and higher borrowing needs will lead to a cyclical issue.
Mr Dalio told the Financial Times “looks like a debt death spiral in the making because it will either require more borrowing to service the debt that will have to be serviced, squeeze out other spending, or require more taxes.”