Fears of a ‘millionaire exodus’ following Labour’s general election win last summer were completely unfounded, a new study has found.
After Labour came into power, there were plenty of reports and stories predicting that there would be a mass exodus of the wealthy from Britain because of the party’s policies.
This was largely based on Labour’s decision to weaken tax reforms and based on a report published by Henley & Partners, a firm that sells golden passports to the superrich.
Now, new research from the Tax Justice Network, co-published with Patriotic Millionaires UK and Tax Justice UK, has found that there was never any ‘millionaire exodus.’
Their review of the Henley report found that the number of millionaires the firm claimed were leaving countries in 2024 was actually a fraction of the total millionaire population in those countries.
Of the more than 3 million millionaires in the UK, just 9,500 were reported to be leaving the country in 2024 – just 0.3% of the millionaire population.
The Henley report used date from 2013 to 2024 to come to its estimates on millionaire migration. After reviewing the figures from this period, the Tax Justice Network’s found that these migration rates consistently stood at near-0% for every year.
They wrote in their report: “Academic studies consistently show that the tax responses of the wealthy involves minimal levels of migration.”
“Henley’s estimates, when put into perspective, reveal a picture that is at complete odds with the report’s narrative and media coverage: millionaires are highly immobile, and nearly 100% of millionaires have not relocated to a new country since 2013, if Henley’s estimates are to be taken at face value.”
Fariya Mohiuddin, Deputy Director: External Affairs at Tax Justice UK said: “Taxing the super-rich to revitalise key services like the NHS and education, that we all rely on, is more urgent than ever.
“Taxing the wealth of the richest is simply not going to cause a mass exodus. This is scaremongering and statistical obfuscation by companies that represent the interests of billionaires and multi-millionaires.
“In fact, when the numbers are crunched properly, rather than using dodgy stats and figures, tax is an inconsequential factor in the decision-making of the vanishingly small percentage of millionaires that do decide to move. In fact, many wealthy people want to pay more tax.
“They know that when public services are well-funded, people are healthy, and the country works better, they will benefit – alongside everyone else.”
Alex Cobham, chief executive at the Tax Justice Network, said: “The majority of people want taxes on the superrich, the majority of millionaires are saying tax us, and practically all credible studies say you should do it.
“But what the media reported, and the government listened to, was a fictional millionaire ‘exodus’ based on questionable data published by a firm that helps the superrich buy their way out of the rules that apply to everybody else. Tax is our most powerful tool for creating more equal societies, but scare stories like these are used to talk down to people and to block positive change.
“This is a wakeup call for media professionals and governments alike. Do your homework when it comes to tax. Treat the Henley report and any such claims about fleeing millionaires with extreme caution, and make sure your stories and your policy decisions are based on robust evidence.”
You can read the full report from the Tax Justice Network by clicking here.
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