Hitting non-doms may blow £4bn hole in public finances

LABOUR'S decision to abolish the “non-dom” regime will blow a £4billion hole in the public finances and lead to over 3,000 fewer jobs if a quarter of the country’s wealthy foreigners leave.

- By Ali Lyon

According to a study from the Centre for Economics and Business Research, non-doms choosing to leave the UK instead of taking up the Government’s less generous replacement will lead the tax take to be £4.6bn lower over five years.

Were half the country’s non-doms to leave — a worst-case scenario — the figure would be £7.8bn and cost 6,325 jobs.

If just 10% go — the Office for Budget Responsibility’s current most likely scenario — the Exchequer would miss out on £2.8bn; roughly the cost of the recent winter fuel allowance U-turn.