Labour's Tax Policies Drive Wealthy to Consider Leaving UK
New research reveals that the Labour government's tax policies, particularly the VAT on private school fees, are driving wealthy parents and high-net-worth individuals to consider leaving the UK. The upcoming Budget on November 26, 2025, has sparked concerns among affluent households about potential tax changes.
A significant one in seven wealthy parents has cited VAT on private school fees as a key reason for contemplating a move abroad. This sentiment is echoed by a quarter of Britain's richest families, who are seriously considering leaving the country due to these tax policies. The concern is so pronounced that almost half of Labour voters who backed the party regret their decision, blaming the VAT hike on private school fees.
The impact extends beyond education. A quarter of parents have had to cut pension contributions to keep up with higher school fees. This financial strain has led 71% of parents to make sacrifices, with 10% even remortgaging their homes and another 10% taking out loans. High-net-worth individuals are also feeling the pinch. One in eight thinks Britain is no longer a good place to start a business, and 14% find the UK less attractive for raising a family.
Speculation about Chancellor Rachel Reeves' first Budget has sparked further worry. High earners, investors, and property owners are braced for changes to inheritance tax, capital gains tax, real estate taxes, and pensions. This has led 16% of high-net-worth individuals to object to the proposed inheritance tax reforms.
The Labour government's tax policies, particularly the VAT on private school fees, are causing wealthy parents and high-net-worth individuals to consider leaving the UK. The upcoming Budget has exacerbated these concerns, with affluent households bracing for potential tax changes. The government must address these issues to prevent a brain drain and maintain the UK's appeal to its wealthiest residents.
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