Over 69,000 workers left Britain last year, sparking tax policy concerns
Data shows more than 69,000 taxpayers filed P85 forms to leave the UK in 2025/26, a rise of over 30,000 since the Labour Party took power.
A Freedom of Information request by accountancy firm UHY Hacker Young uncovered that 69,300 taxpayers submitted P85 forms indicating they were leaving the United Kingdom in the 2025/26 tax year, an increase of more than 30,000 since Labour won the 2024 election. The surge coincides with a series of tax increases introduced by the Labour government, such as higher capital gains tax rates, a new mansion tax, and the abolition of the historic non-domiciled status that previously allowed some residents to avoid tax on overseas earnings.
Analysts and wealth-management professionals say the higher tax burden is driving not only high-net-worth individuals but also middle-income professionals and younger workers to relocate. Labour officials maintain that the UK still offers a stable, competitive tax environment, deep capital markets, and world-class universities. The figures have prompted warnings that further tax hikes could accelerate the outflow of talent and capital.
Why it matters
A growing exodus of workers could weaken the UK labour pool and reduce tax revenues amid fiscal pressures.
How this story developed
- Sep 21 Labour insiders deny early election plans amid polling boost and Reform UK funding scandal
- Sep 22 YouGov's latest seat-by-seat model indicates Reform UK would secure just 123 seats if a general election were called today, a sharp drop from a similar poll a year ago. Labour is forecast to lead with 241 seats, followed by the Conservatives at 130, while the Liberal Democrats hold steady at 71. The results point to the first hung parliament since the 2010 coalition. Reform also appears to be losing its high-profile MPs Robert Jenrick and Suella Braverman back to the Conservatives. The party's decline follows recent scandals involving alleged off-the-books polling and the suspension of aides Dan Jukes and James Orr, prompting a Met Police investigation.
- Sep 25 A new YouGov poll shows Reform UK level with the Conservatives and behind Labour.
- Sep 26 The Labour leader, speaking from his No10 North office in Manchester, recounted how his father Roy, who died aged 86 in a care home while battling Alzheimer’s, highlighted systemic failures. Burnham recalled similar hardships his grandmother faced 25 years ago and warned that neglecting social care will jeopardise the NHS. He pledged to make reform a priority despite political difficulty and will address the issue in his upcoming conference speech.
- Sep 26 Labour’s party chair urged vigilance at the start of the Liverpool conference amid a poll surge.
- Sep 27 Burnham added a vow to chart a new post‑Brexit path.
- Sep 27 Chancellor John Healey will announce a £115 million investment in a new research vessel and three floating docks, framing shipbuilding as the core of a “new age of industrialisation” at the Labour conference.
- Sep 28 A £100 million apprenticeship fund was added to the industrial plan.
- Sep 28 Burnham framed social‑care reform as a key election issue at the conference.
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