Record numbers of British millionaires ditch UK over fears Labours tax plans are damaging the economy

Labours tax plans have triggered a record exodus of millionaires since Keir Starmer took to office.

Thousands of millionaires have fled Britain amid growing concerns that new tax plans will damage the economy and international investors.

The Treasury is now facing pressure to reverse its crackdown on non-domiciled residents as growing numbers of British entrepreneurs are also said to be prepared to leave the country after the autumn budget.

It is estimated that Britain lost a net 10,800 millionaires to migration last year, which is a 157 per cent increase from 2023, the Times reported.

This means Britain has lost more wealthy residents than any other country in the world, apart from China, with the increase accelerating after the general election, according to figures by New World Health.

The UKs richest residents mainly fled to other European countries like Italy and Switzerland, as well as to the United Arab Emirates.

This comes after  it was revealed that one of Britains oldest surviving family businesses claimed it could face ruin after Labours budget torpedoed its operating model.

Jim Rankin, a sixth-generation owner of Rankin Brothers & Sons, a cork manufacturer founded in 1774, was blindsided by Rachel Reeves proposals, which he slams for running completely contrary to the governments ambitions for growth.

A record number of millionaires have left Britain since Sir Keir Starmer took to office

Thousands of millionaires have fled amid growing concerns that new tax plans set by Chancellor Rachel Reeves will damage the economy

Rankin, who is also the chairman of the Cork Industry Federation, detailed to MailOnline how the latest changes to employer National Insurance (NI) contributions and adjustments to inheritance tax will directly impact their cash flow, the affordability of human resources, and succession planning.

Hes blunt in his criticism: The policies the government is putting forward run completely contrary to their own aims. How can they claim to be fostering growth when theyre slapping taxes on businesses that are already struggling?

Business Property Relief (BPR) has up to this point allowed individuals to transfer trading businesses to the next generation free of tax, allowing family-owned businesses to carry on from generation to generation, but from 2026 all companies valued over £1million will be saddled with a 20 per cent inheritance tax when passed on to the next generation.

This change could seriously damage the future of family businesses like ours, Rankin explains.

Weve been around for over 250 years, and part of that longevity is thanks to our careful succession planning. But these new policies mean that were going to have to reimagine everything. Its going to force us to make decisions we never thought wed have to make.

Rachel Reeves proposals have been slammed for running completely contrary to the governments ambitions for growth. Pictured: the Bank of England

Now hes calling out what he sees as a flawed budget and a government thats failing the businesses that drive the economy.

Another group affected in the budget is expected to be holidaymakers who could be forced to pay a hotel tax as part of frantic efforts by Chancellor Rachel Reeves to stabilise the public finances.

Treasury officials are understood to have carried out modelling exercises to work out the impact of introducing a similar tourist tax to that applied in France, where a nightly accommodation charge ranges from less than a pound per person per night at a campsite to up more than £12 in a five-star hotel.

The move comes despite Ms Reeves insistence that she has no plans to add to the £40billion of tax rises she imposed in the autumn Budget, which have been blamed for crushing the UKs growth prospects.