Labour Faces Tax Shock Warning as Billionaire Joins UK Exodus

Labour is facing fresh warnings over a potential tax revenue “shock” after another billionaire reportedly left the UK.

Chris Rokos, the hedge fund billionaire estimated to have paid around £330million to the Treasury last year, has become the latest high-profile figure linked to a growing exodus of wealthy taxpayers.

Ministers have sought to downplay the possible impact on the public finances, despite the sum being large enough to cover the salaries of about 10,000 newly qualified nurses. By comparison, the average annual income tax bill for an individual stands at just £8,510.

However, economists have cautioned that the true cost of “some very big UK taxpayers moving offshore” may only become clear once the next wave of self-assessment tax returns is submitted.

Labour has already introduced substantial tax rises since taking office in 2024, while Andy Burnham and Chancellor John Healey have declined to rule out further increases in next month’s Budget.

Hikes so far have included a crackdown on so-called ‘non-doms’ and inheritance tax, and adding VAT to private school fees. 

Fears have been mounting about how the Government will fund costly promises to build more council houses, overhaul social care and boost defence spending. 

Balancing the books has been made even harder as Government borrowing has been driven to a 28-year high by a bond market sell-off. 

Simon French, of Panmure Liberum, said: ‘One of the challenges with analysing UK tax data is that these high profile HNW (high net worth) departures don’t yet show up in the data. 

‘Indeed tax revenue is currently growing at almost twice the rate of NGDP so most of what we are seeing remains anecdotal. 

‘But next February could be quite the shock for fiscal headroom if the big self assessment returns (for January) come in much softer than forecast as a result of some v big UK taxpayers moving offshore in recent times.’ 

Shadow chancellor Andrew Griffith said: ‘Fewer wealth creators means fewer opportunities for young people – and leaves the rest of us paying more. 

‘When you hike taxes, our best and brightest will not choose Labour’s Britain.’ 

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Work and Pensions Secretary Pat McFadden was asked during a round of interviews this morning what he would say to Mr Rokos.  

‘I would say to him, the UK is a great country. This is a fantastic source of creativity, of innovation,’ he told Times Radio.

‘People want to live in the UK because it’s a great country. I continue to believe that it’s a great country.’

Mr Rokos, 55, donated £190million to Cambridge University earlier this year in what was described as the largest single donation to a British university in modern times.

The tycoon attended a state primary school before winning a scholarship to Eton.

He then studied maths at Pembroke College, Oxford.

Mr Rokos was paid £477million last year after a bumper year for his firm, with profits almost tripling to £940million. He owns the historic Tottenham House in Wiltshire, a 100-room Grade I-listed mansion near Marlborough.

Mr Rokos has also donated to the Conservative Party in the past.

His departure to Greece comes after the country introduced rules allowing some foreigners to pay a flat annual tax of €100,000 (£74,000) on all overseas income.

It is a major boost for Greece as it continues to rebuild its economy after a debt crisis that caused a major eurozone crisis in 2011.

A spokesman for Mr Rokos declined to comment.

James Lawson, chairman of the Adam Smith Institute, said: ‘Chris Rokos’s decision to flee Britain for Greece is just the latest manifestation of the ongoing wealth exodus. 

‘Adam Smith Institute research shows that the number of millionaires in Britain has now reached its lowest level since 2008 — a measly 442,000. 

‘As the reforms to the non-dom system take effect and taxes continue to rise, that number may well fall further.’