Ferrari Scales Back UK Shipments Amid Wealth Exodus
Luxury carmaker Ferrari has reportedly reduced the number of vehicles it sends to Britain following an exodus of high-net-worth individuals reacting to Labour’s new tax policies. The company began “significantly limiting” deliveries around six months ago, citing a decline in the resale value of its vehicles and broader instability in the UK’s luxury market.
Ferrari CEO Benedetto Vigna told the Financial Times that “a lot of people” had left the UK and acknowledged that tax policy changes were among the factors influencing the decision. The company fears that falling second-hand values could damage its premium brand and discourage buyers from upgrading to new models.
Labour’s Tax Changes Blamed for Wealth Flight
The move comes as Chancellor Rachel Reeves faces mounting criticism over Labour’s fiscal reforms. Key measures include the abolition of non-dom status and a 40 per cent inheritance tax on the global assets of foreign residents who have lived in the UK for more than a decade.
Critics argue that the changes are driving wealthy entrepreneurs, investors, and business owners abroad, with Italy, Dubai, and Switzerland emerging as top destinations. According to Foreign Investors for Britain, these policies risk “sending Britain’s golden geese and their golden eggs overseas.”
Declining Resale Values Add Pressure on Ferrari
Ferrari’s UK decision also reflects challenges in maintaining its brand exclusivity. Data from Auto Trader shows that the Ferrari Purosangue has dropped 12.2 per cent in value since January, while the SF90 Stradale has fallen 6.6 per cent. Although prices have begun to stabilise, the company is taking precautionary steps to protect residual values.
Vigna said that while tax policies have played a role, “other factors” – such as personalised designs reducing resale appeal – have also contributed to the decline.
Billionaires and Entrepreneurs Leave Britain
Several high-profile figures have left the UK in recent months amid tax uncertainty. These include:
- Nikolay Storonsky, founder of Revolut, who relocated to the UAE.
- Nassef Sawiris, Aston Villa co-owner, who moved to Italy.
- Ian and Richard Livingstone, property magnates, now based in Monaco.
- Asif Aziz, London developer, who shifted his tax base to Abu Dhabi.
Billionaire John Fredriksen, once Britain’s ninth-richest man, declared that the UK had “gone to hell” and “become like Norway,” citing high taxes and declining competitiveness.
Industry Fears Over Future Wealth Tax
With the Autumn Budget weeks away, speculation is growing that the Chancellor could consider a wealth tax, despite previously ruling it out. Analysis by Rathbones warned that such a levy could trigger a £100 billion flight of assets from the UK, as investors move wealth into safer jurisdictions.
Rathbones economist Oliver Jones said:
“There is clear evidence that a recurring wealth tax would be economically damaging to the UK. Many high earners are already moving capital to low-tax hubs such as Dubai and Singapore.”
Fiscal Tensions Ahead of the November Budget
Rachel Reeves is under pressure to find £30 billion in additional revenue through tax rises and spending cuts to stabilise public finances. However, analysts warn that further tax raids on wealth and business could undermine confidence, reduce investment, and accelerate capital flight.
The Office for Budget Responsibility (OBR) has also cautioned that the UK’s dependence on a small pool of wealthy taxpayers represents a “growing fiscal risk” as more high earners relocate.
Economic Confidence at a Crossroads
Economists say the UK risks losing its competitive edge as international investors look elsewhere for stability and lower tax regimes. With luxury car sales, real estate investment, and high-end spending all showing signs of slowing, the broader economic impact of Labour’s tax strategy could extend far beyond the super-rich.
As one London-based wealth adviser put it:
“The danger isn’t just billionaires leaving – it’s the ecosystem around them collapsing. From luxury goods to jobs in finance and property, the ripple effects are already visible.”
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