Andy Burnham has confirmed he would join a Labour leadership contest if elected as an MP (Image: Getty)
Andy Burnham has been sent a warning as he confirmed that he would enter a Labour leadership contest if elected as an MP. The Mayor of Greater Manchester hopes to be elected as the MP for Makerfield on June 18, and said he would put himself forward to lead his party, were Sir Keir Starmer challenged. The CEO of global financial advisory giant deVere Group has warned that Britain risks accelerating an “exodus” of millionaires if the next Prime Minister pursues wealth taxes and exit taxes. Nigel Green said: “Britain is already experiencing a significant wealth exodus. The country is losing more millionaires than China, Russia, or any other major economy.
“The idea that policymakers could respond to this by introducing wealth taxes, exit taxes or further punitive measures aimed at successful individuals is deeply concerning. It would risk accelerating a trend that is already gathering pace.” Mr Burnham told Sky News in June 2025: “We’ve overtaxed people’s work and we’ve undertaxed people’s assets and wealth and that balance should be put more right.”
Burnham said he would join a leadership race if Sir Keir Starmer were challenged (Image: Getty)
On council tax, he later said: “I think it does need to be revalued, and if that is perceived as a wealth tax by some people with very big, very expensive properties, who will have to pay more, I’m not going to shy away from saying that’s exactly what they should be doing.
“Council tax should be being constantly revalued.”
Mr Green stated that a wealth tax comes with “political incentives”.
“Taxing wealth is often presented as an easy solution to difficult fiscal challenges,” he said.
“The problem is that wealth is mobile.
“Successful entrepreneurs, investors and internationally connected families have options. Capital has options.
“The UK is no longer competing only with neighbouring European countries. It is competing with jurisdictions actively attracting wealth, talent and investment.”
The expert added: “Britain is facing a global competition for capital and talent.
“Other countries are offering incentives. They are creating attractive environments for entrepreneurs and investors.
“A wealth tax sends precisely the opposite message.
“It tells wealth creators they are increasingly viewed as a revenue source rather than an economic asset.
“Governments often focus on what they might collect from a wealth tax. They spend far less time considering what they might lose.”
Investors are already thinking about whether Britain remains a competitive place to build businesses, create wealth and invest for the future, Mr Green said.
He added: “The loss of wealthy individuals matters because they do not leave alone.
“They take investment capital, entrepreneurial activity and future economic growth with them.
“The damage is not confined to a small group of affluent people. It spreads across the wider economy.”
The next Labour leader is likely to face “intense pressure” to raise additional revenue, the specialist believes.
“Wealth taxes and exit taxes may appear politically attractive,” he said.
Nigel Green has warned against a wealth tax (Image: Getty)
“The economic consequences would be severe.
“Britain already leads the world in millionaire departures.
“Introducing new taxes on wealth while other countries actively court investors would be pouring fuel on a fire that is already burning.
“The result would almost certainly be a faster outflow of wealth, weaker investment, slower growth and a smaller long-term tax base.
“At a time when Britain needs more capital and more enterprise, the last thing it should be doing is giving wealth creators another reason to leave.”
It comes as Matthew Ryan, Head of Market Strategy at global financial and FX firm Ebury, warned that the UK can “ill-afford” Mr Burnham’s policy goals.
He said: “We view the upcoming by-election as a fairly significant underpriced risk for sterling, a complacency that perhaps largely reflects the delayed timetable for a possible leadership change, rather than a genuine receding risk in a change in the status quo. Burnham’s clear preference for an expansionary fiscal stance, higher taxation and larger gilt issuance present a downside risk to markets.
“The problem is that the UK can ill afford such an experiment given the wafer-thin fiscal headroom, upward trajectory in the debt-to-GDP ratio and anemic growth at a time of rising inflationary pressures and an ageing population.
“Burnham’s dismissive attitude towards the bond markets, while since softened, is one that the bond vigilantes will not forget, and will punish accordingly.”