Khaberni - Wealth managers have warned about the escalating wave of departures by young people and professionals from the country, driven by declining wages, rising tax burdens, and a lack of affordable housing opportunities.
The Financial Times confirmed that this trend is causing a "silent bleeding of talent", amid a growing sense of frustration with the future of the British economy.
Camilla Stowell, the CEO of wealth management at Rathbones, said, "More Britons—especially from the new generation—are seriously considering leaving the country in search of better opportunities."
Stowell added that "there is a noticeable increase in the number of young people moving to new destinations to build promising career paths."
She noted that preferred destinations include Dubai, the United States, and Ireland, which offer "relaxed tax treatment and extensive opportunities for business establishment."
High Taxes and Insufficient Wages
These statements come at a time when experts warn that the rise in the minimum wage in Britain, despite its social importance, is putting pressure on the salary levels allocated for recent graduates.
According to the "Financial Times", it’s expected that the Finance Minister, Rachel Reeves, will announce this month a 4% increase in the minimum wage to 12.70 pounds ($16) per hour, equivalent to 26,416 pounds ($33,400) annually, while the minimum salary for graduates in the finance and professional services sectors is about 25,726 pounds ($32,500) annually.
David Little, a partner at Evelyn Partners for wealth management, said, "A silent migration is expanding day after day," adding that "young professionals in Britain are not traveling for a gap year or a short experience, but are leaving for a permanent move to build a new life abroad."
He added that "what is notable is that many parents do not oppose this step but rather encourage their children to take it," indicating a decline in confidence in the local future.
Dubai: The Most Attractive Destination
According to the report, Dubai has become the most attractive destination for Britons seeking professional opportunities, as data shows that inquiries about moving to the UAE have increased by more than 400% over the past five years.
Little points out that "working in Dubai means a tax-free income, and often includes housing allowances, medical insurance, and free schooling" compared to a loss of up to 45% of income to taxes and national insurance in Britain, which is even higher in Scotland.
Recent surveys conducted by the Adam Smith Institute show that one in four British people aged between 18 and 30 is considering leaving the country, while another report from the British Council indicates that about three-quarters of the youth are considering the option of working or staying abroad in the near or long term.
Tax-Burdened Economy
Little sees that "the growing frustration with the situation in Britain has become tangible," explaining that the country "is facing increased pressure with rising unemployment, a decline in confidence, and escalating concerns about crime."
He added that "the tax burden has reached its highest level in more than 70 years", making it difficult to convince young people to stay.
In contrast, Stowell confirms that changes to the tax system in last year's budget—especially the extending of the inheritance tax to include pension funds and agricultural land—"prompted more families to consider leaving," pointing out that "the stagnation in tax thresholds and declining economic growth opportunities make optimism about the economic future in Britain almost nonexistent."
The "Financial Times" concluded its report by affirming that "the new generation no longer sees Britain as a land of opportunities, but as an economically straining and limited-horizon environment," amid an increasing trend to turn the British dream into a permanent emigration project.
