THE ASIAN INDEPENDENT UK
Bal Ram Sampla
Geopolitics
When Your Friends Walk Away
Something remarkable is happening in Britain. Wealthy businesspeople are leaving the country in record numbers. What makes this even more striking is that some of Labour’s own supporters are among those heading for the exits. After the Budget delivered by Chancellor Rachel Reeves more are expected to leave.
Lakshmi Mittal is a steel industry giant worth £15.4 billion. For nearly 30 years, he made Britain his home. He wasn’t just any wealthy resident – he was a strong Labour supporter who gave over £5 million to the party during the Tony Blair and Gordon Brown years.
Now, after three decades in the UK, Mittal is leaving. He’s moving his base to Dubai and Switzerland. The reason? He’s worried about inheritance taxes that could take 40% of his family’s wealth when passed to the next generation.
The Numbers Tell a Worrying Story
In 2024, about 7,500 millionaires left Britain. In 2025, that number more than doubled to 16,500. These aren’t just numbers on a spreadsheet. These are people who:
(I) Run businesses that employ thousands
(II) Invest in British companies
(III) Pay substantial taxes
(IV) Create opportunities for others
Why This Matters for Everyone
When millionaires and billionaires leave, they take more than their money:
(I) Lost Jobs
Their businesses often employ hundreds or thousands of workers. When headquarters move abroad, jobs follow.
(II) Lost Investment
Wealthy entrepreneurs invest in startups, property, and growing businesses. This investment capital creates opportunities for others to build their own success.
(III) Lost Tax Revenue
While many criticize the wealthy for not paying enough tax, they actually contribute a disproportionate share. The top 1% of earners pay about 29% of all income tax. When they leave, that money disappears from schools, hospitals, and public services.
(IV) Lost Growth
Business growth often comes from risk-taking entrepreneurs who have capital to invest. When they relocate, future growth happens elsewhere.
The Labour Dilemma
Labour came to power promising fairness and economic growth. They wanted to:
(I) Fix public services
(II) Make the tax system fairer
(III) Protect working people from tax rises
To do this, they ended special tax breaks for wealthy foreign residents and raised inheritance and capital gains taxes.
The problem? You can’t raise money from people who aren’t here anymore.
Where Are They Going?
The wealthy are choosing countries that want them:
(1)Dubai
No income tax, no inheritance tax
(2) Switzerland
Favourable tax deals for foreign residents
(3) Monaco
No income tax at all
(4) Singapore
Low taxes and business-friendly policies
(5) Italy
Special tax schemes for wealthy newcomers
These countries actively compete for wealthy residents because they understand the economic benefits they bring.
A Warning Sign
When even your own supporters pack their bags, it’s time to pay attention. Mittal’s departure sends a powerful message: Labour’s policies are pushing away the very people whose investment and business activity could drive the growth the government says it wants.
Britain faces a choice. It can continue down this path and hope that fairness alone creates prosperity. Or it can recognize that in a global economy, wealthy individuals and businesses have choices – and they’re increasingly choosing to leave.
The question isn’t whether the wealthy should pay their fair share. The question is: what happens when pursuing fairness means there’s nobody left to tax?
The Bottom Line
Economic growth doesn’t come from good intentions. It comes from investment, business creation, and risk-taking. When the people who do these things decide Britain is no longer the right place for them, everyone suffers – not just the millionaires, but the workers they would have employed and the businesses they would have built.
Labour wanted to make Britain fairer. They may be making it poorer instead.
References
1.https://english.rtvlive.com/lakshmi-mittal-leaves-uk-amid-high-tax-policy-fear-shifts-base-to-dubai/
2.https://www.devere-group.com/why-are-millionaires-leaving-the-uk/
3.https://www.tax.org.uk/election-2024-labour-manifesto
4. https://www.blacktowerfm.co.uk/news/millionaires-are-fleeing-the-uk-under-labour/
5.https://fullfact.org/government-tracker/taxes-on-working-people/
