Britain’s wealthiest residents have “no incentive” to remain in the country under Labour’s current tax regime, the Hull FC co-owner and founder of financial services firm Sovereign Life Group has warned.
Andrew Thirkill, whose reported fortune stands at £175million, branded the Government’s approach to taxation “a vicious downward death spiral” and accused ministers of “attacking” entrepreneurs.
He described John Healey’s Budget as “uninspiring” and questioned whether the nation could endure another five years under Labour.
Mr Thirkill said: “I look at that Budget and think, what is the incentive for business owners?”
He told The Telegraph: “There’s nothing. It’s all disincentive. So … would I contemplate leaving the UK? Yes, if there’s no point being here because it means my wealth can be destroyed.”
Since winning power in 2024, the Government’s tax measures have included higher National Insurance contributions for employers, minimum wage rises exceeding inflation, and changes to business relief.
Business tax specialist Ryan, the world’s largest firm of its kind, has calculated that more than 100 policy changes this year alone have saddled companies with a £3.3billion compliance bill.
Wealthier individuals have faced a succession of overlapping levies, ranging from VAT on independent school fees to reforms of inheritance tax.
Frozen tax thresholds, a policy originally introduced under Rishi Sunak, are projected to drag an additional 600,000 people into the higher rate of income tax by the end of the decade.
Mr Thirkill said: “We just see nothing but gloom. It’s just tax everything you can get your hands on. Tax it, tax it, tax it. It’s demoralising.”
A number of high-profile wealthy figures have already departed Britain.
Steel magnate Lakshmi Mittal, valued at more than £15billion on the Sunday Times Rich List, reportedly shifted his tax residence to Switzerland last November, with plans to spend the majority of his time in Dubai.
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Shravin Bharti Mittal, heir to Indian billionaire Sunil Bharti Mittal, was confirmed earlier this month to have relocated to the United Arab Emirates, taking with him a $23.3billion (£18.4billion) portion of his family’s wealth.
Sir Peter Lampl, the millionaire who established the Sutton Trust, also revealed he had left the country, citing Lord Sadiq Khan’s London transport policies as the decisive factor.
Sir Peter told The Telegraph: “More and more people of my type appear to have come to the same conclusion… It’s a mass exodus.”
Richard Fuller, the shadow chief secretary to the Treasury, cautioned that the flight of Britain’s richest individuals “should set alarm bells ringing in Downing Street”.
He said: “The talent and potential of our country is our greatest resource. You cannot keep piling taxes on wealth creators and expect the economy to grow.
“Labour needs to get a grip, stop discouraging our talent from striving for success and make Britain a country people want to invest in.”
TaxPayers’ Alliance chief executive John O’Connell warned that each departing millionaire represented thousands of pounds in lost revenue, with those who stayed forced to shoulder a greater burden “to cover the ballooning welfare bill”.
He said: “Ministers need to stop punishing success and start making Britain an attractive place to call home, to invest, build businesses and create jobs.”
A Treasury spokesman said: “The UK is an attractive destination for talent and investment with a competitive and stable tax system, the fastest growth in the G7 in the first half of the year and business investment at its highest share of GDP since 2016.
“This Budget rejected broad-based tax rises and chose to strengthen the UK’s offer to entrepreneurs, with new measures including new tax reliefs to help businesses start, scale and stay here, creating jobs, attracting investment and driving growth.”
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