Vlad Yatsenko, co-founder and CTO of Revolut, has sounded the alarm on the UK's increasing brain drain, pointing to high taxes, the cost-of-living crisis, and better opportunities abroad as key reasons why young professionals are leaving. Southern Europe, with its tax-friendly policies and warmer climates, has become a beacon for British expats seeking better lifestyles.
Young Brits Seek Quality of Life Over Tradition
The trend of British emigration has seen steady growth, with over 532,000 Brits leaving the country in 2023, according to the British Expat Report 2024. The report highlights that 45% of prospective expats are motivated by the desire for an improved quality of life, while 39% cite the cost-of-living crisis as a key driver. For younger Brits aged 25 to 34, 38% are considering leaving within the next five years, while 11% are actively planning their departure.
France, Spain, and Portugal rank as the most popular destinations for Brits, with Spain topping the list for its affordability and proximity to the UK. Southern Europe's attractive combination of lifestyle and tax incentives has led to a noticeable shift, as highlighted in The Telegraph. These findings align with Yatsenko's observations about a growing preference among young people to move abroad for financial and lifestyle benefits.
Southern Europe's Rise in Tech and Start-ups
Italy and Portugal have successfully leveraged tax breaks and incentives to attract foreign talent. Italy, which suffered a significant brain drain post-2008, has seen a resurgence, with Dealroom data showing its second-best year for early-stage technology funding in 2024. Lisbon, meanwhile, is emerging as a European tech hub, thanks to its vibrant start-up culture and appealing environment for remote workers.
Speaking to The Telegraph, Yatsenko noted that "Southern Europe is now competing with London for young professionals." He pointed out that lower taxes and a higher quality of life in countries like Portugal and Italy are making them increasingly attractive to skilled workers who might have traditionally built their careers in the UK.
High Taxes and Their Impact on British Industries
The UK government's high-tax policies have drawn criticism from multiple industries. As reported by Sky News, Airports UK recently warned that rising business rates could force smaller airports to close, increasing costs for travellers and reducing investment in infrastructure. Similarly, Order-Order noted that high inheritance taxes have sparked protests among farmers, who fear losing their family-run farms to large corporations.
Yatsenko's concerns echo a wider sentiment among business leaders who argue that the UK risks stifling innovation and growth. The Revolut co-founder emphasised that countries actively creating environments to attract talent are outperforming Britain in retaining skilled workers.
The British Expat Experience
The British Expat Report 2024 further reveals that weather is a significant motivator for emigration, with 37% of Brits citing it as a factor in their decision. Meanwhile, safety concerns and missing family are listed as top worries, particularly for women. Despite this, Spain remains a top destination for Brits seeking both affordability and proximity to home, while Switzerland ranks highest for overall quality of life due to its low crime rates and excellent healthcare.
As younger professionals increasingly consider relocating, industries like IT (48%), healthcare (30%), and education (22%) are seeing higher interest in international opportunities. Manchester leads as the UK city with the highest proportion of residents contemplating emigration, with 35% considering a move within the next five years.
The shift of young Brits toward Southern Europe reflects a broader desire for better opportunities, lower taxes, and a superior quality of life. If the UK is to compete in retaining its talent, it must re-evaluate its policies to create an environment that meets the aspirations of its workforce and restores its appeal as a global hub for innovation and growth.
