UK wealth managers warn of capital flight as Labour tax fears mount

Rathbones flags a £100 billion exodus risk if a wealth tax is introduced, intensifying pressure on the government amid political instability.

By Handelsavisen Newsroom · Automated 2026-07-01 21:07 UTC · 1 min read

British asset managers are escalating their warnings against potential fiscal reforms under the Labour government, citing a significant risk of capital flight.

Rathbones, a prominent wealth management firm, has cautioned that the introduction of a wealth tax could trigger an exodus of £100 billion from the UK.

The firm argues that such a move would be economically damaging, undermining the stability of the domestic financial sector.

The warning comes as political pressure on Prime Minister Keir Starmer intensifies.

Reform UK leader Nigel Farage has called for a general election, adding to reports of potential leadership replacement within the Labour Party.

This political turbulence is compounding concerns among investors and financial institutions about the regulatory and fiscal outlook for the UK market.