UK Minister Admits Concern as Billionaires Threaten to Leave Over Tax Fears
London, 25 November 2025 (BNN Web Staff) – Business Secretary Peter Kyle has openly admitted he is “worried” that some of Britain’s wealthiest individuals, including Indian-origin steel tycoon Lakshmi Mittal, are considering leaving the country because of Labour’s planned tax increases.
Speaking to Sky News on Monday, just 48 hours before Chancellor Rachel Reeves delivers her crucial Budget, Kyle responded to reports that Mittal is shifting his tax residency to Switzerland and is also exploring a move to Dubai – jurisdictions with little or no inheritance tax.
“When anyone feels they have to leave the UK to succeed, that concerns me,” Kyle said. He acknowledged that the government’s decision to abolish the centuries-old “non-dom” tax regime – which allowed wealthy foreign nationals to limit tax on overseas income – combined with expected rises in capital gains tax and inheritance tax, is prompting an exodus among some ultra-high-net-worth individuals.
Lakshmi Mittal in the Spotlight
Reports claim the ArcelorMittal chairman and one of Britain’s richest residents is particularly alarmed by potential changes to inheritance tax, which currently stands at 40% on estates over £325,000 but does not exist in Dubai or Switzerland.
A Delicate Balancing Act
While Kyle conceded that “some people are leaving”, he stressed that many international entrepreneurs and investors are still being attracted to Britain because of the government’s pro-growth agenda and the dynamism of the UK economy.
The admission comes at a sensitive moment. Reeves is widely expected to announce up to £40 billion in tax rises and spending cuts on Wednesday to plug what Labour describes as a “£22 billion black hole” left by the previous Conservative government.
Critics, including the Conservative Party, have accused Labour of risking a “brain drain” of wealth and talent, warning that driving away high earners and successful business founders will ultimately reduce the tax take and damage long-term growth.
Kyle insisted the government remains committed to making Britain “the best place in the world to start and grow a business”, but his candid expression of concern underscores the political tightrope the new administration is walking as it tries to raise revenue without triggering a flight of capital.
