In a recent analysis conducted by the BBC, it was revealed that the sixty wealthiest individuals in the UK paid over £3 billion in income tax for the year 2021/22. Each of these individuals earned a minimum of £50 million annually, with many likely earning even more and contributing substantially in other taxes as well.

The Institute for Fiscal Studies (IFS) has noted that these figures emphasize the UK’s dependence on a small group of high-income earners. There are escalating concerns that proposed tax increases in this month’s Budget could lead the super-rich to consider relocating from the UK, potentially harming the nation’s financial health. While the Labour Party has ruled out alterations to income tax, Chancellor Rachel Reeves has expressed her openness to discussions about other tax increases.

A spokesperson for the Treasury emphasized the government’s commitment to “addressing unfairness in the tax system.” Notably, the income tax contributions from these individuals represent about two-thirds of Labour’s total additional spending promises detailed in their manifesto earlier this year.

Looking ahead, UBS, the Swiss banking giant, forecasts that the UK might lose half a million millionaires by 2028, partly due to some relocating to countries with more favorable tax rates. The IFS warned that even a small exodus from these affluent individuals could create a considerable “hole” in the Treasury’s finances.

In contrast, the Green Party has dismissed the notion that raising taxes on the wealthy would drive them away, considering it implausible. Recent reports have suggested that within the Treasury, there are concerns regarding one major funding initiative—the potential elimination of non-dom tax status—falling short of expectations, as initial estimates anticipated it would generate about £1 billion.

It’s important to note that government ministers have linked a £22 billion “black hole” in public finances to the previous Conservative government’s policies, prompting discussions about possible tax increases in the forthcoming Budget. In August, the Chancellor did not rule out the potential for raising capital gains tax either.

Stuart Adam, a senior economist at the IFS, commented that claims regarding wealthy individuals leaving the UK are currently based primarily on anecdotal evidence.