UK (Parliament Politics Magazine) – The Culture Secretary, Lisa Nandy, attributes London’s millionaire exodus to Brexit, urging the government to better EU relations to support UK businesses.
As reported by The Guardian, Lisa Nandy points to Brexit as the cause of London’s loss of millionaires, calling for
“a far better deal with the European Union that makes sure we can continue to support British business.”
Why did Lisa Nandy attribute London’s millionaire loss to Brexit?
Her comments come after a recent report shows that London has dropped from the top five wealthiest cities, with a higher loss of millionaires than anywhere except Moscow.
A study by New World Wealth, commissioned by Henley and Partners, found that London has seen a decline of 11,300 dollar millionaires in the past year. This includes 18 centimillionaires, individuals possessing over $100 million, and two billionaires among them.
Amid the findings, pressure mounts on the government to introduce a wealth tax. This follows Labour’s cuts to the UK’s rising welfare bill, which is expected to impact millions of disabled people, losing their benefits.
What did Lisa Nandy say about Brexit’s impact on London’s millionaire exodus?
The culture secretary addressed the findings by attributing the blame to Brexit, stating that the Labour government is “taking the right approach” and “striking the right balance” in terms of wealth taxation and supporting businesses.
Ms Nandy said,
“The report points to a variety of factors that have led to that, most specifically Brexit, and one of the things that we’re committed to doing as a government is making sure that we get a far better deal with the European Union that make sure that we can continue to support British business.”
She stated,
“So in my area, for example, we’ve got significant problems, as has the EU, because music artists aren’t able to tour from the UK and the EU and vice versa. Now that’s not good for anybody, so closer cooperation is in people’s interests.”
The culture secretary said,
“But the tax regime in Britain is still highly competitive. We’ve got the lowest main rate of corporation tax in the G7, and look, when I come on programs like this, I get asked a lot, ‘why aren’t you taxing wealthy people more?’
Ms Nandy added,
“The fact that you’re challenging me today to say is the tax rate too high, I think broadly, shows that we’re taking the right approach and we’re striking the right balance.”
How could Brexit impact the UK economy long-term, according to the OBR?
The Office for Budget Responsibility has projected that Brexit will result in a 4% annual contraction in the UK’s economy in the long term. This is due to higher non-tariff barriers on UK-EU trade.
Sir Keir Starmer is currently seeking to re-establish ties with the European Union. He pledged to “make Brexit work” by revisiting and renegotiating the deal made under Boris Johnson’s leadership and the Tories.
Why has London lost so many millionaires over the past decade?
According to a study conducted before the impact of Donald Trump’s tariffs announcement, London, along with Moscow, is now one of only two cities in the top 50 to have fewer wealthy individuals compared to a decade ago.
London, home to 215,700 millionaires, has lost 12% of its wealthiest residents since 2014. The document reveals that factors like Brexit, rising taxes, and a falling pound are the major reasons behind the decline.
Meanwhile, Moscow has seen a 25% reduction in its wealthiest population, mainly due to the fallout from Putin’s invasion of Ukraine.
What did Paul Johnson say about the feasibility of a wealth tax?
According to Paul Johnson, the director of the Institute for Fiscal Studies (IFS),
“No country in the world has ever successfully had a wealth tax that’s raised serious money.”
He pointed out that the levy presents significant administrative challenges.
Keir Starmer seeks to hire EU negotiator
Last November, Labour leader sought to hire an EU negotiator to reset relations with Europe.
The position is described by the Cabinet Office as
“principal adviser to the Prime Minister and the Minister for European Union Relations [Nick Thomas-Symonds] on matters relating to relations with the EU and delivering the ‘EU reset’ and on international economic issues.”