Atlas is shrugging

Rich people are leaving the UK, mostly because of punitive taxes, but also because the country is breaking down and the quality of life is lower than they would like.

If the exodus continues, the country could face a number of significant economic, fiscal, and social consequences.

This is because wealthy individuals contribute disproportionately to the UK's tax base, especially through income tax, where top earners pay a large share, but there is also Capital Gains Tax, Inheritance Tax, Stamp Duty on high-end property, and VAT on luxury goods and services.

The UK stands to lose billions in revenue, leading to budget shortfalls and pressure on public services such as the NHS and education. This would create a potential need for tax rises on middle-income earners, or spending cuts

Many rich individuals are entrepreneurs, investors, or business owners. They create companies, invest in startups, and fund infrastructure and innovation. Their departure could lead to a loss of jobs, capital, and innovation

There would be reduced growth, especially in sectors like finance, tech, and real estate. This would be accompanied by a real estate market crash, especially in London, where wealthy individuals own a large portion of high-end and buy-to-let property. Prices, especially in prime areas, would plummet

We would see reduced philanthropy and cultural funding because rich individuals fund charities, museums, arts, and universities. Institutions might lose key sources of private funding, leading to downsizing or closure.

When wealthy individuals leave the country, taking their money with them, capital leaves the UK banking system. The pound could weaken, increasing inflation, especially on imports.

Some wealthy individuals also hold influence or expertise, especially tech founders, financiers, and scientists. Their departure could signal a loss of confidence in the UK and might deter investors and businesses from coming here.

The exodus would likely polarise political debate even more. Those driven by envy and hatred of wealth will probably call for measures to prevent the rich from leaving, and to confiscate their wealth if they do so. When this is raised, the recent surge will become a stampede.

It will never occur to those in power to ask why the rich are leaving, and to address the causes of their departure.

Madsen Pirie