Reeves’ Tax Hikes Spark Backlash from UK’s Wealthiest

Chancellor Rachel Reeves’ proposed tax hikes have sparked intense backlash from some of Britain’s wealthiest individuals, who warn that the changes could have a devastating impact on London’s economy. The proposals include raising capital gains and inheritance taxes, as well as abolishing the controversial “non-dom” tax status. These measures have led to concerns that they could prompt wealthy individuals and family-owned businesses to leave the UK, which would ultimately harm the economy and job creation.

Billionaire inventor James Dyson is one of the most vocal critics, labeling the tax hikes as a “death blow” to family businesses. Dyson argues that the inheritance tax changes could force family-run enterprises to either sell or relocate, damaging long-term growth potential and their ability to contribute to the economy. He also contends that the policies unfairly target family businesses while letting other corporate entities, such as private equity and publicly listed companies, off the hook.

The criticism extends beyond individual entrepreneurs to broader concerns about the UK’s economic future. Rishi Khosla, co-founder of challenger bank Oak North, expressed fears that the tax hikes could drive “wealth creators” out of the country, potentially stifling innovation and economic growth. This sentiment is echoed by other business leaders who worry that the government’s approach could lead to a long-term decline in London’s status as a global financial hub, hurting both the capital and the UK as a whole.