Marks Sattin comment on UK austerity and a financial services talent exodus
Comment on UK austerity and a financial services talent exodus
Dave Way, managing director of accountancy and finance recruiter Marks Sattin said:
The budget marks a crucial point in the UKs austerity drive, but fears that it will see a mass exodus of financial services talent are overblown. Although financial services workers are among the most mobile in the UKs labour force, their reasons for staying or leaving are always far more complex than seeking simply to maximise the money in their pocket. If the tax system were the primary driver of where people want to work, the UAE and British Virgin Islands which both levy 0% income tax would be teeming with British jobseekers.
While money is of course important, family connections, childrens schooling, friends, spouses career, prospects for promotion and the high profile of western financial centres all encourage business and people to stay in the UK. People dont just up sticks and leave the country at the drop of a hat. What will determine whether or not the UK remains a global financial centre in the long term will be economic stability and the regulatory environment. Income tax has a role to play on this, but it is only a small part of a much broader picture. The austerity package will be tough to swallow, but most financial services workers will prefer doing so to chasing slightly larger pots of gold elsewhere.