Brexit is culpable for London suffering the biggest exodus of the super-wealthy than any city in the world, Lisa Nandy has said.
The Culture Secretary has vowed to secure “a far better deal with the European Union” to support businesses after a damning report found that the capital is no longer one of the world’s top five wealthiest cities.
An annual study on global wealth revealed London has lost a higher proportion of millionaires than anywhere other than Moscow.
The study, which was conducted for migration consultancy Henley & Partners by intelligence firm New World Wealth, showed the capital lost 12 per cent of its wealthiest residents since 2014, while Moscow has lost 25 per cent.
In absolute terms, London has lost more millionaires than any city worldwide, with 30,000 departing the capital over the past ten years, compared with 10,000 fleeing Moscow amid Vladimir Putin’s illegal invasion of Ukaine.
But the researchers also discovered that London lost 11,300 millionaires in just 12 months amid Labour’s controversial raid on non-doms.
The Adam Smith Institute think-tank said Chancellor Rachel Reeves’ reforms could cost the UK more than £10 billion a year in lost economic growth, totalling £111bn over the next 10 years.
Asked about the findings, Ms Nandy primarily blamed Britain’s departure from the European Union for the departure of so many millionaires.
She said the government is “taking the right approach” and “striking the right balance” when it comes to taxing wealth and supporting UK industries.
The Cabinet minister told Sky News: “The report points to a variety of factors that have led to that, most specifically Brexit, and one of the things that we're committed to doing as a government is making sure that we get a far better deal with the European Union that make sure that we can continue to support British business.
“So in my area, for example, we've got significant problems, as has the EU, because music artists aren't able to tour from the UK and the EU and vice versa. Now that's not good for anybody, so closer cooperation is in people's interests.”
She added: “But the tax regime in Britain is still highly competitive. We've got the lowest main rate of corporation tax in the G7 and, look, when I come on programs like this, I get asked a lot, ‘why aren't you taxing wealthy people more?’
“The fact that you're challenging me today to say is the tax rate too high, I think broadly, shows that we're taking the right approach and we're striking the right balance.”
The Office for Budget Responsibility has estimated that Brexit would wipe 4 per cent per annum from the UK’s economy in the long run due to a rise non-tariff trade barriers on UK-EU trade.
Meanwhile, Sir Keir Starmer has pledged to “make Brexit work” by revising the deal agreed by the previous Conservative administration in 2020 under Boris Johnson.
The Prime Minister has opened the door to negotiations with Brussels for a revamped youth visa scheme as part of the “reset”.
