By George Prior
A Jeremy Corbyn-led government will lead to an exodus of high-net-worth individuals from Britain, warns the CEO of one of the world’s largest independent financial advisory organizations.
The warning from deVere Group’s chief executive, Nigel Green, comes as UK Prime Minister Boris Johnson today launches his official election campaign with a column in The Daily Telegraph in which he compares opposition Labour Leader Jeremy Corbyn to Stalin over his “hatred” of wealth creators.
Mr Green notes: “Whilst I wouldn’t have used the language employed by Mr Johnson, through his anti-business rhetoric, and high tax and low-profit policies Jeremy Corbyn does routinely take swiping broadsides at the wealthy.
“It’s our experience that an increasing number of high-net-worth clients are legitimately worried about the damaging impact of a Jeremy Corbyn-led government on their finances.
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“There are real concerns from these individuals that should Mr Corbyn sweep into power he would increase inheritance taxes, income taxes, stamp duty and capital gains taxes, potentially even roll out capital controls, and slash other areas, such as pensions tax relief.”
He continues: “I believe we can realistically expect a Corbyn government would trigger an exodus of the country’s most successful and wealthiest individuals who contribute significantly both directly and indirectly to the British economy.
“Soaking the rich doesn’t work because these people, typically, have the resources to move to lower tax jurisdictions if the tax burden in the UK becomes too great. They are internationally mobile.
“Should these largely job and wealth-creating individuals emigrate – and according to our anecdotal evidence a high number very well could – government finances will suffer considerably because they contribute a disproportionately large amount to the state’s coffers.”
Mr Green adds: “It would also likely deter top international talent and investors from coming to the UK too, which would negatively impact long-term, sustainable economic growth prospects.”
The deVere CEO concludes: “If Mr Corbyn is serious about having the better-off pay more tax, they should cut rates further and allow them to become wealthier.
“This would incentivise top achievers, who prop-up ‘The System’, to remain in the UK. However, I suspect that implementing this economically-sound philosophy would be political suicide for Jeremy Corbyn.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement