Hundreds of Britain's most influential business leaders, policymakers, and innovators converged last month at The Emmanuel Centre in Westminster for a crucial public forum addressing London's economic future.
The event, titled London – Opportunities and Obstacles for Growth, was organised by Central London Alliance CIC and featured six high-level panel discussions examining the critical issues shaping the capital's development.
Tax System Under Fire
Panel Four, focusing on Entrepreneurship, Wealth and Tax, emerged as a highlight of the evening, delivering a stark assessment of the UK's current tax environment. Chaired by Christian May, Editor-in-Chief of City A.M., the discussion featured prominent voices including Dia Chakravarty from The Daily Telegraph, Tom Moore of WBR Group, Peter Dunphy from The Family Business Community, and Rob Agnew of Isio Group Limited.
Dia Chakravarty expressed widespread business frustration, stating: "Every business and industry I speak to agrees that taxes are far too high and that is holding us back."
Tom Moore acknowledged the challenges facing policymakers but warned that tax rises alone would be insufficient to address the national debt without corresponding efforts to control public spending.
Competitiveness Crisis
The panel raised serious concerns about the UK's declining competitiveness, with Rob Agnew revealing alarming data about wealth flight. Approximately 50-65% of high-net-worth clients are relocating overseas, according to feedback from tax and legal advisers.
While many maintain strong connections to London, they're choosing countries with more favourable healthcare, security and tax conditions, representing a long-term loss of investment and innovation for the UK economy.
Recent changes to the non-domiciled tax regime came under particular criticism, with panellists arguing the policy could cost the Treasury around £17 billion in lost revenue for a projected gain of only £4 billion.
Call for Bold Reforms
Peter Dunphy highlighted what he described as a systemic problem: "The government have increased all of the taxes that they think the general public has never heard of... ending up with lesser-known taxes that disproportionately attack entrepreneurs and businesses."
Tom Moore proposed incentive-led reforms to stimulate investment, including allowing pension funds to invest in UK residential property. This approach could unlock capital for affordable housing while retaining pension assets within the UK.
Inheritance tax emerged as another major concern, described as one of the most unpopular and counterproductive taxes that discourages long-term planning and entrepreneurship.
The discussion concluded with concerns about the limited practical business understanding within policymaking circles. Panellists agreed that greater representation of individuals with real-world business experience is needed in government to ensure policy decisions reflect economic realities.
The forum's message was clear: as the UK navigates economic uncertainty, policymakers must prioritise pragmatism over ideology and embrace reforms that empower entrepreneurs, reward risk-taking, and retain wealth within the UK economy.
