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Britain’s richest have ‘no reason’ to stay as Labour piles pressure on wealth creators, warns rugby club owner
Hull FC co-owner Andrew Thirkill has warned that wealthy people and business owners may leave Britain because he believes Labour’s tax policies offer little incentive to stay or invest. The financial services founder, whose fortune is reported at £175 million, called the Government’s approach a “vicious downward death spiral” and said he would consider leaving if he felt his wealth could be destroyed.
The article cites higher employer National Insurance contributions, wage rises, changes to business relief and more than 100 policy changes that accountancy firm Ryan says have created a £3.3 billion compliance bill for companies this year. It also points to VAT on independent school fees, inheritance tax reforms and frozen income tax thresholds, which are projected to bring 600,000 more people into the higher rate by the decade’s end. Several wealthy figures are reported to have left, while the Treasury said the UK remains an attractive place for talent and investment.
In short
- Andrew Thirkill says tax policies could prompt wealthy residents to leave.
- Ryan estimates policy changes have added £3.3 billion in compliance costs.
- The Treasury says Britain remains attractive for investment.
Steelman: both sides, in good faith
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The case for
Thirkill’s warning reflects the concern that higher taxes and frequent policy changes can reduce the rewards for investing, hiring and building businesses, while making it harder for firms to plan. If wealthy people and businesses leave or invest less, the country could lose jobs, expertise and tax revenue, potentially weakening public services as well as growth.
The case against
The Government can argue that raising revenue and reforming tax reliefs helps fund public services and distribute the tax burden more fairly, while frozen thresholds and other measures broaden contributions without necessarily making Britain unattractive to investors. Decisions to relocate depend on many factors, and the Treasury says the UK remains attractive for talent and investment; responsible policy should weigh those claims against the risk that abrupt or cumulative costs deter business activity.