Wealthy city workers are threatening to leave London and head to Switzerland amid news that bankers are being taxed 50 percent on this year’s bonuses, and the news that from April, half of any income over £150,000 will go straight to the Inland Revenue.

High-earners tempted to leave the capital and avoid increased tax. Photocredit: Journey World Blog

According to The Times, advisers in Geneva, Zurich and the high-end Swiss ski resorts say that a steady trickle of wealthy Brits have either made the move or are strongly considering a new life in the mountains. In December alone, eight British-based hedge funds made the transfer.

The Guardian reported that, according to London Mayor, Boris Johnson, up to 9,000 city residents could be heading to Switzerland, the Carribean and New York in search of shelter from tax increases and an oppressive anti-city attitude from ministers. The paper goes on to report, however, that property companies beg to differ: Up market estate agent Cluttons cited an increase in high-end property prices and an upturn in City rentals.

The Times, however, maintained forecasts of a significant exit from the capital and claimed that London is no longer the financial hub it used to be, citing a recent Bloomberg poll that found Britain had dropped behind Singapore into third place as the city most likely to be the best financial hub two years from now.

In an interview with high-earner Gareth Fielding, The Telegraph noted that decisions to leave the city are not based purely on money. Fielding explained that what really irks him is the failure of the government, that he claims to subsidise generously, to make Britain a safer, more pleasant place to live. Fielding cites anti-social behaviour as a growing problem in his West Kensington neighbourhood. “I don’t mind paying tax, even fairly high tax, as long as that is well spent, but I’m afraid I didn’t get that impression with Gordon Brown’s policies,” said Fielding.

Whether or not a mass exit occurs, The Guardian reported that there is no need for alarm; according to the paper, a drift of small private equity houses and hedge funds is unlikely to worry the UK’s economics and finance ministry, and even threats from bigger players such as Goldman Sachs are unlikely to cause panic in the City.