I’m one of Britain’s highest taxpayers – a wealth tax would be the last straw
Many patriotic high taxpayers like Steve Rigby accept that they work 50 per cent of their time for the government. A punitive wealth tax raiding assets that have already been taxed multiple times risks upending the social contract and driving businesses and jobs away
The drumbeat for a wealth tax grows louder by the day, and it bodes ill for Britain’s economic future. As someone who has spent decades building businesses and contributing to the public purse, I write not from a position of selfishness, but from genuine worry about the unintended consequences of this misguided policy.
Let me be clear from the outset: I am a patriotic taxpayer who believes deeply in the social contract that binds our society together. Tax, when applied fairly and efficiently, serves as a vital force for good. When my family appeared 39th on the Sunday Times Rich List for tax contributions, I felt genuine pride that we were fulfilling our civic duty. This recognition represented not just our financial contribution, but our commitment to the country that has enabled our success.
When my family appeared 39th on the Sunday Times Rich List for tax contributions, I felt genuine pride that we were fulfilling our civic duty
However, like any relationship, the social contract requires balance to remain sustainable and talk now of a wealth tax could be the straw that breaks the camel’s back for many of the UK’s highest taxpayers, me included. Moreover, it threatens the very businesses that create jobs and drive economic growth.
I have long accepted what I consider a fair arrangement: working roughly half our time for our businesses and shareholders, and half for the government through taxation. This 50-50 split feels equitable and maintains the delicate balance between private enterprise and public service.
No restraint
A wealth tax threatens to shatter this equilibrium entirely. Unlike income taxes, which are levied on new earnings, a wealth tax represents a fundamental assault on assets that have already been subject to taxation multiple times throughout their accumulation. We already grapple with inheritance tax, which, while controversial, at least has the decency to wait until death before claiming its due. A wealth tax shows no such restraint.
The international evidence against wealth taxes is overwhelming. Germany abandoned its wealth tax in 1997, recognising its economic destructiveness. France followed suit in 2018, acknowledging that the policy had driven away more capital than it had ever collected. The Nordic countries, often held up as models of progressive taxation, experienced massive capital flight when they implemented similar measures. Even where wealth taxes persist, such as in Spain, they generate less than 0.2 per cent of national revenue while imposing enormous administrative burdens and economic distortions.
I understand Rachel Reeves, the Chancellor, faces unprecedented fiscal pressures. Where previous generations retired at 65 and lived perhaps five additional years, today’s retirees can expect two decades of post-work life, complete with complex healthcare and social care needs. The NHS confronts previously-unimaginable challenges, from obesity-related conditions to mental health crises that have exploded across all demographics. Meanwhile, what were once conceived as temporary safety nets for the genuinely needy have morphed into permanent entitlements, with welfare costs projected to spiral from £296bn in 2025 to £378bn by 2030.
Yet we cannot tax our way out of this crisis by continuously squeezing the same narrow segment of society. When the Labour backbench rebels against saving a mere £4bn in welfare spending, while simultaneously demanding ever-higher taxes on wealth creators, we reach an impasse that threatens the entire system’s viability.
The solution lies not in punitive wealth taxes, but in comprehensive tax reform that spreads the burden more equitably across the entire working population. If Britain chooses to maintain a larger state, then all citizens must contribute proportionally to its funding. Continuing to pile additional burdens on less than one per cent of the population will inevitably drive them from our shores, leaving everyone worse off.
The wealth tax may promise easy revenue, but it delivers only economic destruction and the exodus of those who we can least afford to leave.
Steve Rigby is the co-chief executive of Rigby Group, a technology-focused family business, and chair of Family Business UK