Rich ‘will flee’ if Corbyn wins power – and take £1trillion out of economy
THE country’s wealthiest people are preparing to leave Britain and take up to £1trillion out of the economy if Labour wins power, it was warned yesterday.
Several billionaires and multimillionaires said they would move their wealth offshore – and warned Jeremy Corbyn’s policies could wreck UK businesses.
The head of Coutts, the Queen’s bank, said his customers were ‘more worried about a Corbyn government than Brexit’.
Wealth adviser Brian White told the Sunday Times he had helped ten people worth more than £500million to leave Britain over the past year, totalling more than £5billion.
Tycoons including Sir James Dyson and Sir Jim Ratcliffe have already announced corporate or personal relocations, although neither said they were seeking to avoid a hard-Left government.
But Alfie Best, who made a £285million fortune from mobile home parks, told the newspaper he would pull his wealth out of Britain if Mr Corbyn became Prime Minister.
And Tory donor John Gore, who has given the party £2.6million since 2017, said the current Labour Party was ‘a horror story’ and he would donate millions more to the Connell servatives if it helped to keep Mr Corbyn away from power.
The Broadway producer and financier said: ‘Am I worried about a Marxist being in charge? Yes, massively.
‘Based on the intelligence I have from people within the Labour Party, it is a horror story.’
Mobile home entrepreneur Mr Best said he would ‘shrink’ his UK operation and focus on the US and Caribbean under a Corbyn government, saying: ‘How could I take the risk of leaving money here?’
Labour has set out policies including increases to income tax and corporation tax, and changes to the law on industrial action.
Economic think-tanks warned at the weekend that plans to double the minimum wage for workers under 18 to £10 an hour would actually increase youth unemployment, as firms will employ fewer teens.
Treasury analysis has shown Labour would have to borrow £1trillion to bankroll its spending spree over the next ten years – equivalent to £3,500 for every household.
Mel Stride, Financial Secretary to the Treasury, said it would ‘hammer’ business. He said: ‘Labour’s plans for the economy would have an adverse effect on everybody.
‘They would hammer businesses of all sizes, from the shopkeeper to the bank manager, with higher taxes, more debt and fewer jobs.’
Shadow Chancellor John McDonsaid a Labour government would tackle inequality and introduce antitax avoidance measures aimed at the super-rich and corporations.
He said: ‘The public are fed up with runaway inequality and a Labour government will take action to address it.’
The Sunday Times published its annual Rich List yesterday and said it had spoken to billionaires and multi-millionaires who were preparing to move family trusts and other assets offshore, or relocate their businesses overseas.
The list showed Britain’s 1,000 wealthiest individuals and families had a combined wealth of £771.3billion, up £47.8billion on last year.
Industrialist brothers Sri and Gopi Hinduja topped the list, with a family wealth of £22billion, followed by property tycoons David and Simon Reuben, with £18.66billion.
Sports Direct owner Mike Ashley’s fortune dropped by £461million and the owners of several other high street retailers fared badly.
Bet365 boss Denise Coates took home the biggest salary, pocketing £220million last year. Financial technology entrepreneur Valerie Moran became the first black woman on the list in its 31-year history.
‘Labour is a horror story’