The naughties have seen Britain journey along an extraordinary path - from high wealth to deep debt - as the economy has been badly managed and peoples’ attitudes towards their own wealth status have perhaps lacked maturity in the face of enticing offers for what really only amounted to increased debt.
The final nail in the coffin of Britain’s economy came when the government began bailing out banks to the tune of billions, and then slapped a ‘fine’ on the happy bankers who were once again in a position to profit. This ‘fine’ of 50% of any bonus received has really upset the City and increased talk of emigration.
So, with the bankers’ tax, the 50% tax on high earners and all the other wealth erosion techniques the government has desperately thrown into the mix to try and stem the flow of wealth out of UK, has Darling actually created a situation where Britain may be facing a massive population exodus in 2010?
There are those in high places who are indeed warning that such a reality could come to pass. Boris Johnson, the mayor of London, has warned that the government may have created a situation where the future of the British economy is under threat. He publically warned of “long-term consequences” for the economy in a direct response to the news that Tullet Prebon, a City based money broker, is relocating abroad and is to actively assist its 700 strong UK staffing base to move with it.
This is not the first high-profile company to relocate overseas following the current government’s taxation assault – it is however the first high-profile company to vociferously promote the fact that it is to actively assist its staff to relocate to a more favourable tax regime abroad as well! A statement from the company reads: “The board has concluded that it is in the best interests of shareholders to respond to requests from desks to relocate out of the United Kingdom and will seek to facilitate, where possible and appropriate, relocation to the company’s other offices around the world which have more certain taxation regimes.”
Whilst many in the UK are perhaps justifiably behind the government’s undoubtedly politically motivated decision to heavily tax bankers’ bonuses, what they will not be supporting for long is an unstable, uncompetitive, unattractive tax regime that will see those who can, relocate elsewhere – and those who cannot, overburdened with massive public debt and excessive personal taxation.
So, is Britain facing a massive population exodus in 2010? It could certainly witness an increase in emigration rates, yes – but it may be a while longer before the reality of the economic and taxation mess becomes wholly evident and has many more people fleeing the UK for their fiscal lives.
