money International investors threaten to pull the plug on UK as country records worst recession in history
UK and international investors are looking to pull the plug on the UK after the country entered its worst recession in history.
According to top fund managers, investors had been increasingly looking to move money overseas and this trend is now expected to increase.
Particularly concerning for investors is the depth of the recession, a 20% fall between April and June. This was much worse than other leading economies, including France and Italy.
Investors fear that the government has mishandled the economy in the same way it dealt with the health crisis.
Others worry about more local lockdowns and the unwinding of the furlough scheme which has protected so many jobs, while Brexit uncertainty also looms large over the economy.
Nigel Green, chief executive of deVere Group, which has $12 billion under advisement, said: "A growing number are looking to grow and safeguard their wealth by moving assets overseas.
“The pace of this trend will increase over the next few months as the issues intensify.
“UK and global investors will be becoming increasingly nervous of this worrying situation and can be expected to take precautionary measures to insulate themselves against a potential fall in the value of UK based financial assets."
Green also believes there will be tax hikes in the Autumn Budget, something that has spooked wealthy overseas investors in particular.
He added: “It is highly likely taxes will rise. Possible targets for hikes could include income tax for higher earners, capital gains tax, inheritance tax, and VAT.
“In addition, new wealth taxes may be brought in, which was something the Prime Minister was considering before the pandemic hit.
"These potential changes in the Budget can be expected to prompt those overseas with financial ties to the country, to look into the international options available to them."
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