Despite the Chancellor confirming that higher taxes on the wealthy would be “part of the story” in her 26 November statement, a report from the wealth management firm Rathbones warns of significant economic damage. The research suggests a recurring wealth tax could see £100 billion moved abroad or into “less productive forms”.

Oliver Jones, head of asset allocation at Rathbones, told City AM that the tax would be “costly to administer”, requiring annual valuations of complex and illiquid assets. The firm’s analysis projects a setup cost of £600 million, with ongoing annual compliance and administration expenses reaching £700m. Rathbones noted these administrative hurdles were a key reason the 1970s Labour government abandoned its own plans for a wealth tax.

The Chancellor, who is expected to announce tax rises approaching £30bn, has dismissed concerns about a potential exodus of the country’s richest individuals. “When people scaremonger again this year, we should take some of that with a pinch of salt,” she stated.

However, her comments come as several high-profile billionaires have recently changed their residency. Media owner Richard Desmond moved to the United Arab Emirates this week, following Revolut co-founder Nik Storonsky, who made the same move a week prior.