The UK government is making a big show of considering, though they ultimately probably won’t follow through, scrapping the so-called “golden visa” programme, which allows wealthy people to bypass immigration constraints to move to the UK, in exchange for investing at least £2 million. This scheme is generally considered to have grossly abetted the growth of London as a world centre for money laundering.
Now, The Guardian reports, “London lawyers who help the global super-rich apply for “golden visas” to enter the UK have called on the government to reconsider its decision to abolish the Tier 1 investor visa scheme, warning that it would be “enormously damaging” to the economy.”
Kyra Motley, a partner at the law firm Boodle Hatfield, said the UK was jeopardising billions of pounds in overseas investment “because of a popular myth that foreign money is dirty money”…
Chetal Patel, a partner at law firm Bates Wells, said scrapping the investor visa because of increased tensions over Russia’s threat to Ukraine would be “unfair” to other rich people wishing to come to the UK.
“Since the introduction of golden visas in 2008, the UK has benefited from billions of pounds of investment. It would be enormously damaging to the UK economy if this was to be cut off.”
Weirdly, despite the fact that this is a purely economic argument the only people quoted are lawyers, not economists. I wonder whether The Guardian would be equally open to splashing on their home page claims by a group of economists that a new tax law would damage the integrity of the UK legal code? Particularly if those economists admitted — indeed, if their sole claim for expertise in this matter — was their personal pecuniary interest in having the law changed.
Honestly, is there any reason to think that the UK is suffering a shortage of foreign investment — as opposed to, say, a shortage of farm workers, which is well documented, and has been driven by intentional government action to exclude foreigners. And this despite the fact that — “popular myth” or no — the incidence of criminality among billionaires (domestic or foreign) is clearly higher than among farm workers.