Shambolic UK Budget to spark wealth exodus

"The shambolic leak of the UK budget minutes before the speech underscores a shambolic government whose Budget will "drive an exodus of wealth from Britain," warns the CEO of one of the world's largest independent financial advisory organisations. The warning from deVere Group's Nigel Green comes as the OBR's mistakenly published documents show an extraordinary tax squeeze heading for high earners, homeowners and professionals across the UK."

"Markets, advisers and globally mobile clients now have clear evidence of where this government intends to extract revenue, and the implications are already reverberating through the wealth sector. "You can't tell the world you want to stabilise the UK economy and then allow the centrepiece fiscal document to appear online by accident. That extraordinary kind of lapse signals operational weakness. Investors and high earners will be seeing it as a warning about the government's overall direction.""

"The OBR papers confirm a multi-year freeze on income tax thresholds through to 2030-31. The decision locks workers into relentless fiscal drag and pulls more income into higher bands year after year. "When a government fixes thresholds while inflation and wages rise, it quietly increases tax every year," he says. "People who generate significant economic activity can relocate easily. They analyse long-term patterns, not political slogans.""

The mistaken online publication of budget minutes revealed a £26 billion tax rise and a plan that pushes the tax burden to its highest share of GDP in modern records. The documents show targeted tax increases affecting high earners, homeowners, and professionals. The OBR papers confirm a multi-year freeze on income tax thresholds through to 2030-31, creating ongoing fiscal drag that moves taxpayers into higher bands as inflation and wages rise. Markets, financial advisers, and globally mobile clients now have clarity on revenue extraction plans, prompting relocation planning and concerns about the UK's attractiveness for wealth creators. Operational lapses in publication undermine confidence in fiscal management.

Read at London Business News | Londonlovesbusiness.com