Wealthy Britons plan to emigrate if Miliband becomes chancellor
Wealthy Britons are preparing to emigrate if Ed Miliband becomes Chancellor under Andy Burnham, according to tax advisers who warn that fears of a new wealth raid in this autumn's Budget could accelerate a capital flight already under way since Labour took power in 2024. Industry estimates suggest nearly 17,000 millionaires have already left the UK, with advisers reporting wealthy clients are actively planning their exits.
Key Takeaways
- Tax adviser David Lesperance told The Telegraph his remaining UK clients are already preparing to leave.
- Industry estimates suggest almost 17,000 millionaires have left Britain since Labour's 2024 election win.
- Burnham allies reportedly see a Miliband chancellorship as '50/50' amid market-confidence concerns.
- Reform UK claims Burnham's pledges could add a £38bn tax raid on the wealthy.
- Treasury officials are exploring a merged autumn Budget and spending review, per the Financial Times.
Why are wealthy taxpayers planning to leave the UK?
David Lesperance, a tax adviser to ultra-high-net-worth individuals, told The Telegraph that his remaining clients in Britain are already preparing to leave. They fear a new fiscal raid in this year's Budget, with speculation mounting that Miliband could succeed Rachel Reeves at the Treasury.
Industry estimates cited by the paper suggest almost 17,000 millionaires have departed since Labour won power in 2024. Raising taxes on the wealthy — a policy Miliband supports — could deepen what advisers describe as capital flight, as mobile taxpayers relocate assets and residency abroad.
What would a Miliband chancellorship mean for markets?
According to Burnham allies quoted by The Telegraph, appointing Miliband would make it harder to retain the confidence of markets and Britain's top taxpayers. Concerns centre on whether he would be seen as more focused on net zero than on growth.
One ally told the paper the decision is now '50/50', leaving Burnham in a difficult position after months of relying on Miliband's political advice. Some supporters suggest Burnham could ask Miliband to approve contested North Sea projects such as Jackdaw and Rosebank on day one to signal the Treasury would not become an activist climate department.
How could Burnham's autumn Budget affect wealth?
Separately, the Financial Times reports that Treasury officials are exploring a bolstered autumn Budget merged with a departmental spending review. Tax measures and departmental allocations could be announced together in a single fiscal statement, with October emerging as a potential date.
One person close to discussions said the aim is a 'big one-off fiscal statement with all the tax and spending decisions taken at the same time.' A Treasury veteran described the idea as sensible but completing settlements within three months as ambitious. For more on how fiscal shifts reshape fortunes, see our Net Worth & Wealth coverage.
What taxes might Burnham's government pursue?
Reform UK analysis reported by The Telegraph claims Burnham's pledges could amount to a £38bn tax raid on the wealthy, lifting Labour's total annual tax increases from about £66bn to more than £100bn. Identified measures include a care levy of up to 10 per cent on estates, aligning capital gains tax with income tax, and new National Insurance charges on rental income.
Reform economy spokesman Robert Jenrick challenged Burnham to rule out 10 named taxes if he disputes the figures. Burnham has not confirmed the package but faces pressure to set out his fiscal plans before an expansive autumn statement that could define his government's economic direction through the 2029 general election.