Non dom crackdown sparks calls to revive investment in UK infrastructure projects

The recent abolition of the non-dom tax regime has ignited debate across Britain’s financial and construction communities, as influential voices call for a re-evaluation of the move’s impact on foreign investment. Leo Quinn, chief executive of construction giant Balfour Beatty, has emerged as a leading figure urging Chancellor Rachel Reeves to soften her approach to lure back wealthy overseas investors essential for major UK building projects.

Since the Chancellor scrapped non-dom status in April, key international business figures have departed the UK, raising concern about the country’s competitiveness as an investment destination. The exodus includes prominent names such as Goldman Sachs banker Richard Gnodde, Aston Villa co-owner Nassef Sawiris, and Norwegian shipping magnate John Fredriksen, all citing the revised tax rules as a driving factor.

Speaking on the matter, Quinn highlighted the substantial benefits that foreign investors bring to the British economy. He argued, “London’s the best city on the planet; we should be attracting billionaires and wealthy families here. Their investments are phenomenal and vital for the nation’s infrastructure.” He appealed for a more measured approach from policymakers, suggesting, “Maybe we’ve gone a little too far with these non-dom changes, and we should look at ways to mitigate the effects.”

Data from the Department for Business and Trade underlines these concerns, revealing that foreign direct investment in Britain fell to a record low last year. The number of inbound projects declined by 12 per cent to 1,375, the lowest level since records began in 2008, despite government initiatives to boost overseas cash flow.

Amid this backdrop, Balfour Beatty’s trading update brings a glimmer of optimism. The company reported half-year profits rising by 18 per cent to £132 million, thanks predominantly to progress on government-backed infrastructure initiatives. Landmark projects currently underway include the £833 million Net Zero Teesside carbon capture development and the Sizewell C nuclear plant, where Balfour Beatty will undertake a third of the main civil engineering works.

A Treasury spokesperson maintained a positive outlook, stating that the government is attracting “record investment to our shores”, while also providing clarity on major project priorities. Yet, as calls mount for post-Brexit Britain to rethink its approach to wealthy overseas investors, the tension between tax reforms and investment attractiveness looks set to remain a contentious issue for the foreseeable future.