Billionaire steel magnate Lakshmi Mittal has become the latest to leave the UK following Labour’s overhaul of taxes on the super-rich, as the Autumn Budget unfolds. After three decades in Britain during which he became synonymous with London high society, bought some of the city’s most expensive homes, invested in Queens Park Rangers and donated millions to charities and even £5 million to Labour; the Rajasthan-born mogul has shifted his tax residency to Switzerland and is expected to spend much of his time in Dubai.
He is far from alone. Earlier this year, Norwegian shipping billionaire John Fredriksen relocated to Dubai, bluntly declaring that Britain had “gone to hell”. Last year, German investor Christian Angermayer branded the non-dom reforms the UK’s “death blow” before moving to Switzerland. Tech innovators Herman Narula (Improbable) and Nik Storonsky (Revolut) have also chosen Dubai, each voicing deep concerns about the UK’s increasingly stringent tax landscape.
A historic wealth exodus from Britain
The UK is witnessing an unprecedented flight of wealth. In 2024, an estimated 10,800 millionaires left the country, a 157% surge on the previous year, in what analysts describe as one of the sharpest outflows anywhere in the developed world. The exodus has been driven largely by sweeping tax reforms, including the abolition of the non-dom regime and anticipated increases to capital gains and inheritance taxes. Many high-net-worth individuals are now relocating to more favourable jurisdictions such as Switzerland, Italy and the UAE.
This shift is already visible at the top end of the wealth spectrum. The 2025 Sunday Times Rich List recorded a dramatic drop in the number of UK-based billionaires, down to 156, the steepest fall in the list’s 37-year history. As Rachel Reeves prepares an Autumn Budget shaped by caution and political calculation, her message is clear: restoring economic credibility requires fiscal discipline, and the wealthiest must contribute more.
But whether the ultra-rich are willing to shoulder this new burden appears increasingly doubtful. Britain now tops the global ranking for millionaire exits, with Henley & Partners projecting as many as 16,500 departures following the scrapping of tax breaks for foreign residents. And when the rich leave, the fallout is wider than headline numbers. The UK has long depended on affluent investors, entrepreneurs and globally mobile families to fuel capital inflows, support innovation and anchor London’s status as a premier financial hub.
Fewer wealthy individuals mean less private investment, reduced tax receipts and a growing perception that post-Brexit Britain is becoming a difficult place for high-net-worth residents to call home.
Expert view: More tax rises likely, but stability matters most
The exodus of the super-wealthy poses an uncomfortable question: can Britain afford to lose its richest residents, or is this the price of a fairer tax system? Experts predict she will be forced to explore alternative ways to raise revenue.
Arbinder Chatwal, Partner and Head of India Advisory Services at BDO UK, says the government’s economic challenges have narrowed Reeves’s options. “Since the 2024 Budget, spending cuts, tax receipts and economic growth have not materialised as the Chancellor had hoped,” he explains. “It now seems likely that to meet her ‘non-negotiable’ fiscal rules, Rachel Reeves will need to raise taxes.”
With income tax, national insurance and VAT politically untouchable, Chatwal expects a “smorgasbord” of other tax rises aimed at those deemed able to pay more. While speculation continues around a potential wealth tax, he believes such a move is unlikely given the high risk of driving wealthy individuals overseas. Instead, he anticipates increases in indirect taxes on wealth such as new higher council tax bands, curbs on capital gains relief for expensive homes or a levy on high-value property sales.
“A modest rise in CGT is also possible,” he says, noting that it could boost revenues ahead of the change without discouraging property sales afterward. Reforms to inheritance tax may also be on the table, particularly measures to limit the use of lifetime gifts to reduce estate size.
But above all, Chatwal argues that stability, not low taxes, is what internationally mobile individuals value most. A BDO survey found that policy certainty ranks higher than tax rates when choosing where to live. For that reason, he urges Reeves to publish a long-term personal tax roadmap, similar to the business roadmap released last year. “This would allow people to plan with confidence,” he says, “and encourage more wealth creators to invest, spend and pay their taxes here in the UK.”
Budget expectations and quiet pressures
With Labour government under pressure to restore credibility and prove that Britain’s finances are being handled with discipline and restraint, the Chancellor now faces the formidable challenge of sticking to the strict fiscal rules she set for herself. Markets are alert, voters are expectant, and political pressure is at its peak. The Chancellor is navigating one of the most delicate economic moments of her tenure.
So, what exactly can we expect from this Autumn Budget? It is expected to confirm substantial rises to the National Living Wage and Minimum Wage, part of the government’s push to give workers an immediate income boost amid persistent cost-of-living pressures. But for small businesses, rising cost to hire people is a massive challenge. However along with frozen rail fares, prescription charges and the preserved Triple Lock, the most striking move is a new surcharge on the wealthiest homeowners.
Behind the scenes, the Treasury has urged major banks to publicly endorse the Budget and to refrain from criticising the government, especially as Reeves appears set to spare the sector from a long-feared tax raid.
Reeves has also privately warned business leaders that failing to support the government risks boosting Nigel Farage’s Reform UK. Could this amount to soft coercion; encouraging public endorsements in exchange for gentler treatment at budget time?
