Digby Jones, the trade and investment minister, broke ranks with official government line yesterday, warning plans for a tax crackdown on non-domiciled foreigners living in the UK threatened London’s role as a world finance centre.
In a candid interview with the Financial Times (FT), Lord Jones said the tax changes made it harder for him to sell Britain as a destination for skilled foreign workers and inward investment.
The minister, who has been approached by many from the City telling him this was a serious issue for the financial services industry, said he had not been consulted on the change. ‘I can give you five reasons as to why you should invest in Britain before you go and invest anywhere else in Europe. But maybe there were seven and now there are five,’ he told FT.
Lord Jones said that, because the £30,000 annual charge on foreign residents would kick in only after seven years, UK would remain appealing to many young people from abroad who wanted to spend time in the UK. ‘We’ve got to get the message across to these people that it’s seven years before this begins to bite,’ he said.
Further reading:
Lord Mayor of London attacks non-dom policy
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