Such enterprise is often found among newer, independent companies, not large corporations: in the digital age, most high potential startups could be located elsewhere. And they will be – if Labour drives the risk takers away.
I have spoken to three private bankers who all say they are receiving unprecedented numbers of serious enquiries from ultra-rich clients about leaving Britain. Sceptics say this is all just talk.
But the Henley Private Wealth Migration Report shows Britain lost more millionaires than anywhere else except China last year – and that this number is expected to double in 2024. My estate agent connections tell me the high end London housing market is in a slump because so many tycoons are selling up.
Entrepreneurship and business achievement occur thanks to network effects. Look at the extraordinary dynamism of Silicon Valley over the last 60 years. London risks losing its status as a hub of entrepreneurship. Sadly, Britain isn’t the US: our standard of living is much more precarious than the socialists realise.
We are heavily reliant on financial services and high net worth rainmakers in sectors like banking, asset management and private equity. If many of the key founders and executives depart, then the decline in tax, investment and job creation would be precipitous.
If Labour continues to peddle the politics of envy, we will all suffer. HMRC published a document in January this year which estimated that if capital gains tax were increased by 10pc, then for the 2026/7 tax year, £2bn less tax would be raised. That ignores the collateral damage of less investment, diminished job creation and fewer start-ups.
Let us hope that Labour listens to its more sensible advisers, who know that economics driven by ideology and resentment against success leads to universal misery.
Luke Johnson is chairman at Risk Capital Partners