Digby Jones, the trade and investment minister, has warned that plans for a tax crackdown on non-domiciled foreigners living in the UK threaten London’s role as a world finance centre. Financial Times
Lord Jones said the tax changes made it harder for him to sell Britain as a destination for skilled foreign workers and inward investment.
The minister, who said he was not consulted on the change, added: 'I can give you five reasons as to why you should invest in Britain before you go and invest anywhere else in Europe. But maybe there were seven and now there are five.'
Lord Jones had been frequently asked about the tax changes on trips to India and the Gulf. He feared they had reduced the attractions of Britain as a destination for skilled people.
His warning follows intensive lobbying by the City, which is concerned that overseas investors and executives will pull out of the UK if Alistair Darling, chancellor, goes ahead with the crackdown.