The once-coveted British passport has tumbled in value since Rachel Reeves’ “wealth tax” Budget, according to a new report.
In the latest Passport Index, put together by financial advisory firm Nomad Capitalist, the UK’s iconic blue travel document has slipped from 21st place in the previous list down to 35th out of 199 countries.
This means that Bulgarian, Spanish and Hungarian passports are considered to offer more flexibility for travel and tax freedom.
Malta topped the list, just ahead of Greece, Romania and Ireland in joint second place. Cyprus came in fifth, alongside the Czech Republic.
Back in 2020, the same ranking had the UK in 11th place, just weeks ahead of Britain’s exit from the European Union.
The fall, described by the firm as “one of the most striking movements in this year’s index”, was driven by a “combination of tax reforms and declining mobility competitiveness [that] has made the UK markedly less attractive to global entrepreneurs and internationally mobile families.
The power of the British passport is waning
There is still residual value in the British passport, thanks to rules around dual citizenship and an international perception of the rule of law applying strongly in the UK.
However, the firm found that worries from abroad around press freedom and expanded powers of surveillance have dented this perception.
A spokesperson for Nomad Capitalist said: “The combination of tax reforms and declining mobility competitiveness has made the UK markedly less attractive to global entrepreneurs and internationally mobile families.”
Elsewhere, the US rates relatively low in 43rd space, having been docked points for its idiosyncratic tax system for American citizens abroad – which includes significant annual tax reporting – alongside the barriers to citizenship for arrivals from abroad.
The spokesperson added: “Policymakers seem to have forgotten a simple truth: people have options. You can’t keep raising taxes, shifting rules and expect entrepreneurs, investors and professionals to stay put out of sentimentality.
“Britain no longer offers the deal it once did – and globally mobile talent is voting with its feet.”