A dangerous message

T he government’s proposed £30,000 tax for non-domiciled residents in the UK seems against all it promotes and encourages. Non-doms are vital in building companies, keeping foreign businesses in the UK, ensuring the transfer of skills and expertise, and keeping Britain competitive.

I agree with Sir Digby Jones that the plans for a tax crackdown on non-domiciled foreigners living in the UK will threaten London’s role, especially as a world finance centre. It sends out the wrong message at a time when developing superpowers are welcoming non-doms with open arms. Many foreign companies, including US private financial services firms and exciting venture-backed start-ups like Skype, came to the UK to be headquartered. This will drive them away and do more damage to the economy than is imaginable, threatening to undo years of hard work.

Promoting competition

The government is often heard promoting the need to remain competitive in these increasingly global times. London is at the heart of the world’s financial markets and a number of other key sectors, including media, communications, telecoms and technology – to name a few. It is the unique concentration of international expertise that gives London and the UK such a strong global position.

The UK is in the middle of a revival, its vibrancy and cultural diversity making it one of the most exciting countries in the world to work in. We must do everything to ensure it remains ahead of other destinations and continues to attract the best talent from around the world.

Non-domiciles are effectively economic immigrants, frequently temporary, sometimes permanent or long-term, but in most cases they add significant value.

High-value additions

They frequently cluster in the City. These people often work in Britain and abroad. They had a life before Britain and they’ll have a life after it.

They have created assets before they entered the country. Yet, while they are in the UK they contribute to the wealth of this nation by spending money and paying tax, just like everyone else.

I strongly believe that wealth created elsewhere, which exists prior to their arrival in Britain, should not be affected. They are neither cheating nor trying to make money out of their positions, but need an incentive to come here rather than New York, Hong Kong, Singapore, Dubai, Sydney and the many other cities fighting for their talents.

These people have a choice as to where they live and work. I, like others, will in due course take this into account and, ultimately, may vote with my feet.

Today, Britain’s advantages are that it’s English-speaking and the centre of a great deal of trade, primarily financial. If this disappears it becomes another small, relatively low-growing European country. If Britain is intent upon becoming a backwater, this is a good way to go about it.

The doug richard project

Following my rather rash pledge to work with 5,000 start-ups in 2008/09, I’ve created The Doug Richard Project, because I believe economic growth in the UK is tied to the entrepreneurial economy. Most jobs and wealth come from entrepreneurial activity and small business start-ups. So it’s not just for people with an idea, but for small businesses, too. To find out more, visit www.thedougrichardproject.co.uk