Kamran Balayev: Britain’s brain drain. Why the wealth exodus is more than just tax flight

Kamran Balayev is an international legal and policy expert, business leader, and former London mayoral candidate.

For decades, the term brain drain referred to the outflow of skilled professionals from developing countries to the West – a one-way movement that deprived emerging economies while boosting global hubs such as London and New York.

Today, however, Britain is experiencing a reverse flow. The country that once attracted global talent is increasingly seeing its wealth-creators, and the capital, innovation, and enterprise they bring, move elsewhere.

According to the Henley & Partners 2025 Private Wealth Migration Report, the UK is on track to lose 16,500 high-net-worth individuals (HNWIs) this year, the highest annual outflow globally. Over the past decade, London alone has lost more than 11,000 entrepreneurs and investors, causing it to drop out of the world’s top five wealthiest cities.

Much of the focus has fallen on the abolition of the non-dom regime by Rachel Reeves in April, and the stricter inheritance tax rules. Although these measures were projected by the Office for Budget Responsibility to generate over £10 billion per annum, analysis by the Centre for Economics and Business Research now warns that if even half of non-doms depart, the Treasury could suffer a £12.2 billion fiscal loss (accounting not only for lost tax revenue but also reduced business investment and employment).

Yet this trend goes deeper than fiscal policy. What is unfolding is a wider loss of confidence among Britain’s entrepreneurial class.

The UK has long benefited from attracting ambitious individuals drawn by the rule of law, financial depth, and London’s global stature. They have founded companies, scaled operations, funded jobs, and contributed heavily to public revenue: in 2022–23, non-doms paid £8.9 billion in tax.

Still, the exits of figures like Guillaume Pousaz (Swiss founder of fintech giant Checkout.com) mark a change. After 12 years scaling the business in London, he relocated to Monaco in April 2025. His move was followed by others, including Goldman Sachs executive Richard Gnodde, Nassef Sawiris, and Lakshmi Mittal, who have taken steps to leave or restructure British operations. These aren’t protest exits; they signal a shift in where mobile entrepreneurs feel welcome.

The decision to leave is about more than tax. Rising crime rates, faltering public services, and unstable regulatory environments have led many to question whether the UK still offers the safety, clarity, and fairness they expect. Meanwhile, cities like Dubai, Singapore, Milan, and Paris are actively positioning themselves as more predictable and supportive to global wealth-creators.

This represents a departure from the post‑1980s model of open capitalism, limited government, and free markets; ideals espoused by Friedrich Hayek, who argued that prosperity stems from individual freedom, not top-down redistribution. The current focus on taxing accumulated wealth risks undermining long-term growth and global competitiveness.

If international entrepreneurs begin to see the UK merely as a point of extraction, not a place to build, the repercussions could be profound: reduced start-up support, lower philanthropic investment, and fewer high-growth firms. While Britain retains strengths such as its legal system, universities, and financial markets, these are no longer sufficient without an environment that enables, rather than erodes, confidence.

Britain now faces a pivotal decision. Will it remain a high-tax jurisdiction with diminishing global appeal? Or will it embrace clarity, predictability, and openness, the values that once made it the destination of choice for wealth-creators and innovators?

This is not about coddling the rich. It’s about understanding that human and financial capital are global and mobile – and that driving them away exacts a deeper cost than most fiscal models account for.

The answer lies in reaffirming the very traits that once made it great: Britain as a competitive, opportunity-rich nation that values enterprise, security, and economic freedom.