Rachel Reeves will soon head to Davos to impress upon the world’s financial elite that Britain is open for business and ready and willing to receive their backing. Meanwhile, those who have invested in Britain are taking their money and leaving.

It’s an absurd contrast. Ours is a planet that is increasingly interconnected, in which wealthy people can move freely, choosing where to live and to put their cash. Gone are the days when a few countries acted as magnets, drawing the lion’s share. Today, it’s a crowded field. The competition to attract the international rich, who bring with them cash and jobs, is ferocious and intensifying.

Yet Reeves and her boss, Keir Starmer do not appear to understand this. They show little appreciation for the forces of globalisation. Instead, they’re intent on throwing away an existing strong position, built upon the universality of the English language, Britain’s culture and its legal and education systems, creativity and innovation, and at the same time sending a signal that Britain is shut for business.

How else to interpret their crackdown on non-doms. At a time when Britain is struggling, when the economy is pulverised by international headwinds, they scrap an in-built advantage.

New figures show that Britain lost a net 10,800 millionaires to migration last year, a 157 per cent increase on 2023. Of that exodus, 78 were worth £100m-plus and 12 were billionaires. Many were foreigners, qualifying for favourable non-domicile tax treatment.

The global immigration analyst, New World Wealth, and investment migration advisors, Henley & Partners, researched individuals with liquid assets of more than $1m. Their study reveals that after Rishi Sunak called the general election, with Starmer’s Labour a shoo-in, they fled Britain at the alarming rate of one every 45 minutes.

It was not so long ago that Britain’s new ambassador to Washington, Peter Mandelson, said that Labour was “intensely relaxed about people getting filthy rich”. That was under a different Labour prime minister. This one is jetting back and forth, trying to claim something similar but his chancellor, Reeves, said in her first Budget that from this April, she will abolish the longtime non-dom scheme and current non-doms’ overseas assets will be subjected to UK inheritance tax.

In another survey, Oxford Economics found that two-thirds of non-doms have left, planning to leave or are considering going because of the change, especially the imposition of the worldwide inheritance charge.

In 2023, HMRC said there were 74,000 non-doms in the UK; each non-dom pays a £30,000 annual fee to shield their overseas assets and earnings from tax. But they also paid an average of £800,000 of VAT in the last tax year; £890,000 in stamp duty over the previous five years; and they have each invested an average of £118m in the UK and donated £5.9m to good causes.

That is cash Starmer and Reeves are intent on bidding farewell to. It’s here, right now, in Britain. Non-doms don’t just live and invest here, they employ staff here. By 2030, up to 23,000 jobs could vanish.

The Treasury calculates the reform will raise £2.5bn a year in revenue. Oxford Economics says the change will cost the public purse almost £1bn a year, such is the level of departures and with them the loss of VAT and other taxes.

The Treasury is supposed to employ the brightest minds and smartest algorithms to model likely outcomes. On this occasion, they seem to have been absent – or Starmer and Reeves did not want to know.

The latter is possible. Certainly, what began as a revenue-raising initiative is no longer. Instead, it can only be defended on grounds of left-wing ideology.

In defending the move, the Treasury states: “We are committed to tax reforms that are progressive and underpinned by fairness. It is right that those who can afford to, contribute their fair share to fix the foundations to provide stability and fund public services to drive growth.”

But where is the sense in damaging the country, weakening its economy and seeing tens of thousands lose their jobs as a result? Not to mention dissuading those who were thinking of coming to the UK and residing and investing here?

In her Budget, Reeves said an ‘internationally competitive regime’ would replace the current non-dom rules. So far, there is precious little sign of this as investors depart. The chancellor could set a yearly fee of £250,000, putting Britain on the same footing as the likes of Italy, Greece and Switzerland.

It could even be much higher – many non-doms say they would be prepared to pay more. What they’re anxious to see is the scrapping of the inheritance tax levy. That, they view as a betrayal of trust. They came to the UK on the basis their overseas assets and earnings would be safe. By all means tax them on what they own and do in Britain, they’re saying, but leave the rest of the world alone. That was the pact and now it is to be broken.

Reeves should say to non-doms, please don’t go, we want you to stay and help grow the economy. Likewise, the message should be sent to those who would otherwise like to come: please do, we want you and here is the proof.

Mandelson and his chief, Tony Blair got it. And, Starmer and Reeves please note, Blair went on to win not one but three general elections. If they know what is good for them and for the country, Starmer and Reeves would follow his example and switch to compensation not confiscation, before further damage is done.