Key Takeaways
- • Tom Goddaard, assistant manager at Blick Rothenberg, warned that rumoured capital gains tax (CGT) or dividend tax rises in the Autumn Budget could drive away private equity, venture capital and hedge fund professionals led by Chancellor John Healey.
- • According to the 2026 Global Financial Centres Index (39th edition, published by Z/Yen Consultancy), London remains Europe's leading financial services city and ranks second only to New York among 137 cities.
- • The BVCA reports more than 540 active UK private equity and venture capital funds, with more than 830 headquartered in London.
- • UK private equity and venture capital houses directly generate approximately £200bn of GDP (around 7 per cent of economic output) and support more than 2.5mn workers, according to the article.
- • The top 10 per cent of UK taxpayers already contribute 60 per cent of total income tax receipts, a base Goddaard argues is at risk of talent flight.
Summary
Tom Goddaard, assistant manager at audit, tax and business advisory firm Blick Rothenberg, has warned that London risks losing its status as a centre of private equity and venture capital excellence if Chancellor John Healey proceeds with rumoured tax increases in the Autumn Budget. Goddaard said Healey could "drive away financial professionals", including senior executives at private equity firms, venture capital houses and hedge funds, in pursuit of short-term fiscal gains. He was responding to speculation about a capital gains tax (CGT) rise or increases to dividend tax.
Goddaard argued that "by increasing taxes such as CGT or dividend tax, the chancellor could be sacrificing long-term, high-value tax contributions for a short-term fiscal gain." He cited the 2026 Global Financial Centres Index, the 39th study published by Z/Yen Consultancy, which ranks London as Europe's leading city for financial services and second only to New York among 137 cities researched. He also cited BVCA data showing more than 540 active UK private equity and venture capital funds, more than 830 of them headquartered in London, and more than 90,000 listed financial companies in the UK.
The article states that private equity and venture capital houses directly generate approximately £200bn of UK GDP, around 7 per cent of economic output, and support more than 2.5mn workers. Many of these employees are among the highest-paid individuals in the UK, and the top 10 per cent of taxpayers already contribute 60 per cent of total income tax receipts. Goddaard warned that additional taxation could become a tipping point for this talent.
Goddaard also warned of a possible brain drain extending beyond senior executives to advisers and supporting businesses that deploy capital into the UK economy. He said London's success "is not based on the UK's tax regime" but is still exposed to competition from other jurisdictions. He urged the government to treat successful investors and entrepreneurs as drivers of investment, employment and innovation rather than primarily as sources of tax revenue.
Goddaard argued that "by increasing taxes such as CGT or dividend tax, the chancellor could be sacrificing long-term, high-value tax contributions for a short-term fiscal gain." He cited the 2026 Global Financial Centres Index, the 39th study published by Z/Yen Consultancy, which ranks London as Europe's leading city for financial services and second only to New York among 137 cities researched. He also cited BVCA data showing more than 540 active UK private equity and venture capital funds, more than 830 of them headquartered in London, and more than 90,000 listed financial companies in the UK.
The article states that private equity and venture capital houses directly generate approximately £200bn of UK GDP, around 7 per cent of economic output, and support more than 2.5mn workers. Many of these employees are among the highest-paid individuals in the UK, and the top 10 per cent of taxpayers already contribute 60 per cent of total income tax receipts. Goddaard warned that additional taxation could become a tipping point for this talent.
Goddaard also warned of a possible brain drain extending beyond senior executives to advisers and supporting businesses that deploy capital into the UK economy. He said London's success "is not based on the UK's tax regime" but is still exposed to competition from other jurisdictions. He urged the government to treat successful investors and entrepreneurs as drivers of investment, employment and innovation rather than primarily as sources of tax revenue.
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