Rachel Reeves ‘considers major tax changes’ to lure millionaires back | Politics | News
Rachel Reeves is set to offer tax cuts to lure high-income earners back to the UK, targeting wealthy Gulf residents displaced by the turmoil of the Iran war. In a move that comes after months of criticism that tax rises are pushing millionaires abroad, Ms Reeves will use this week’s International Monetary Fund meetings in Washington to declare Britain “open for business”.
A senior Treasury official said: “Geopolitical risk is now reshaping where people live, invest and start businesses, and the Government is determined to respond.” The Chancellor will announce a formal consultation on the taxation of Limited Liability Companies, an issue repeatedly raised by potential arrivals as a barrier to moving to Britain.
The Treasury source added: “We will examine options across the whole tax system to keep the UK fair and competitive, including targeted benefits for newcomers and reforms to offshore structures.”
The initiative comes after Ms Reeves was accused of driving out the wealthy with repeated tax increases. The government now hopes the changes will reverse this exodus and bring back high earners at a time when instability in the Middle East has caused many in the Gulf to reconsider their plans.
Ms Reeves is also expected to use her trip to Washington to promote Britain as a “safe haven economy”. He will emphasize that the government maintains a tight grip on public finances while investing in skills, infrastructure and new industries.
However, the timing is problematic. In its latest forecasts, the IMF reduced the UK’s 2026 growth outlook to just 0.8 percent; This is the largest downgrade for any major wealthy economy.
The Treasury official insisted the tax consultations were aimed at making the UK offer more attractive, rather than a broad tax cut. The source said: “We will consult options in the tax system to keep the UK bid fair and competitive.”
The announcement marks a sharp change in tone from previous terms in parliament, when Reeves’ budgets focused on raising revenue through higher employer National Insurance, frozen tax thresholds and changes to non-dom rules that have sparked warnings about the exodus of millionaires to Dubai and other low-tax areas.
Critics have repeatedly argued that these measures are undermining Britain’s attractiveness for the super-rich to live and invest.
Now, with the Iran conflict disrupting Gulf wealth and causing some residents to head elsewhere, Reeves looks ready to soften parts of the tax regime to win them back.
