Former Chancellor Jeremy Hunt was wrong to scrap the tax perks of wealthy foreign residents in the UK, according to shadow business secretary Andrew Griffith, who said the move had undermined the country’s attractiveness to global wealth creators.
Speaking at TheCityUK’s annual conference in London, Griffith admitted it had been a “mistake” for Hunt — under whom he served as a Treasury minister — to abolish the centuries-old non-dom regime during his final Budget. The changes were originally forecast to raise £2.7 billion in extra tax revenue.
Hunt’s move was followed by Labour Chancellor Rachel Reeves, who went further by scrapping the exemption that previously allowed non-doms to shield foreign trusts from UK inheritance tax.
Griffith, a former Sky executive and City figure, said he looked to the current government “with some bewilderment”, accusing Reeves of going too far and putting the UK’s competitiveness at risk. He cited modelling by the Centre for Economics and Business Research warning that if even a quarter of non-doms left the UK, the policy could end up costing the Treasury money.
“It was a mistake to attack global wealth creators,” Griffith told Business Matters. “I won’t expand on that, but it was a mistake.”
“What Rachel Reeves has done is very materially different by expanding it to people’s global assets, putting a significant amount [of future funding] in jeopardy,” he added. “All advice tells me that is what is driving people to leave the country.”
The remarks mark a clear break from Hunt’s economic approach and signal growing Conservative support for rolling back elements of the policy, particularly as reports suggest the Treasury is now reviewing how inheritance tax applies to non-doms’ overseas assets.
South Africa’s richest self-made woman recently told City AM she would reconsider relocating from the UK if Reeves softened her stance. “It’s not about protecting my money from the tax man,” she said. “I pay all my taxes, but South Africa has foreign exchange controls and I don’t know whether [my estate] would be able to pay the IHT bill under the current rules.”
Griffith also confirmed the Conservatives were exploring a “modernised version” of the suspended Tier 1 investor visa, once dubbed the UK’s “golden visa”, which was scrapped in 2022 amid concerns about money laundering and links to illicit Russian wealth.
Originally introduced in 2008, the scheme allowed individuals investing £2 million or more in the UK to gain residency. Griffith suggested any revival would be focused on channelling investment into key growth areas aligned with the government’s industrial strategy, such as clean energy and life sciences — an approach reportedly under consideration by Labour as well.
Asked about Reform UK’s controversial proposal to offer non-doms tax-free treatment on their foreign assets in exchange for a one-off £250,000 fee, Griffith dismissed the idea. “I’m not paying attention to that,” he said.
Reform leader Nigel Farage claims the “Britannia Card” would raise £1.5 billion annually and redistribute the money to the lowest-paid full-time workers. But tax experts have called the plan unrealistic, with Dan Neidle of Tax Policy Associates warning it would result in long-term revenue losses.
James Quarmby, a leading private wealth lawyer at Stephenson Harwood, called the cash distribution plan “bonkers”.
With thousands of high-net-worth individuals reportedly preparing to leave the UK due to the tax changes — and Britain projected to lose more millionaires in 2025 than any other country, according to Henley & Partners — pressure is growing on both main parties to rethink their approach.
Griffith signalled that the Conservatives were taking time to develop a firmer long-term policy and indicated the party would support any efforts by Reeves to scale back or recalibrate her inheritance tax proposals.
His comments come amid signs that the Treasury itself may be preparing to water down parts of the new regime, particularly around the taxation of foreign trusts — one of the most contentious areas for wealthy international residents.
Whether Reeves will backtrack remains to be seen. But with the City increasingly vocal in its warnings and high-profile individuals already heading for the exits, the political cost of holding the line may soon begin to outweigh the fiscal gain.
