From Yahoo Finance: 2025-04-23 09:26:00

The Treasury borrowed £14.6bn more than expected last year due to a decline in tax receipts from non-doms. Capital gains tax revenue dropped to £11.2bn, while self-assessed income tax revenues also fell short. The non-dom regime was abolished, leading to an exodus of high net worth individuals from the UK.

Government revenues for last year were £7.8bn below forecasts, with the OBR warning of a concerning shortfall. The Adam Smith Institute predicts a £14bn annual economic loss from abolishing non-dom status. Higher borrowing may lead to tax hikes in the Autumn Budget, threatening the Chancellor’s fiscal rules.

The IMF recently downgraded growth projections for Britain, citing US tariff announcements and domestic issues. The Treasury defends the tax system as fair and progressive, emphasizing the attractiveness of the UK for long-term residents. Critics warn of the need for urgent changes to avoid further economic challenges.

Read more: Treasury borrowing surges as non-doms flee Britain