The 50p tax rate refugees: let ’em leave!
The City are spreading their usual rubbish about hordes of talented financiers leaving the UK because of the outrageous insertion of fairness into our tax system. If this really is an effect of the new tax rate then we should applaud it. I say this not because I think these people unethical, elitist or even because of their role in the debt mania of the last few years, but because they are dinosaurs.
As I’ve said elsewhere, the era of turbo-charged finance capital is over. The City will need to radically reinvent itself if it is to generate wealth for the UK economy in the future. It will need to be much more focused on investment return from long-run growth and real, hard won improvements in productivity not from financiers’ tricks. It will also need to take real risks with investment in innovation and experimentation not by loading risks onto other parties.
The hedgies, private equity boys and derivatives traders don’t have the experience, skills or inclination to do this sort of work, so the sooner they are cleared out of London the better. They served their purpose for a while, got very much above themselves and then crashed to earth. They are no longer the future.