The UK’s new Prime Minister Andy Burnham has passed over both frontrunners for Chancellor, appointing John Healey instead of Shabana Mahmood, in a move the CEO of one of the world’s largest independent financial advisory organisations says removes the one appointment markets were counting on for restraint.
Nigel Green of deVere Group’s comments come as Burnham chose Healey, a former Defence Secretary with Treasury experience dating back two decades, over Mahmood and Ed Miliband, with government sources describing the pick as someone who will deliver Burnham’s agenda rather than shape one of his own.
He says: “Markets rallied recently on the assumption that a fiscally cautious figure would sit between Burnham and his own instincts on tax. This theory no longer holds.
“Investors should reprice UK assets with that in mind.”
The deVere CEO points to Healey’s record as the clearest signal of where pressure is now headed.
“Healey resigned from Cabinet last month demanding more money for defence and has pushed for spending to reach 3% of GDP by 2030. He now runs a Treasury under a Prime Minister who has ruled out raising income tax, VAT and National Insurance. That spending has to be funded somewhere, and wealth, capital gains and property are the obvious remaining options.”
The timing adds to the pressure on Britain’s standing with mobile capital. The UK lost an estimated 16,500 millionaires in 2025, one of the largest outflows recorded anywhere in the world, and forecasts already pointed to a further rise in 2026 before today’s appointment.
He continues: “A week of calm markets was built on the expectation of restraint at the Treasury. What arrived instead is a Chancellor with a spending record and a mandate, by Downing Street’s own description, to execute rather than temper the Prime Minister’s plans. That is a materially different risk picture than the one priced in on Friday.”
Nigel Green says the probability of tougher wealth measures has shifted with today’s decision.
He says: “A wealth tax, an exit charge on departing assets, and a further rise in capital gains tax all look more likely with Healey at the Treasury than they did with Mahmood.
“Burnham has removed the appointment that gave markets a reason for confidence.”
Wealthy individuals and business owners should treat today as a prompt to act rather than wait. Reviewing residency options, diversifying where assets sit and building flexibility across jurisdictions is worth doing now, ahead of the Autumn Budget, rather than after it confirms the direction today’s appointment points toward.”
Nigel Green concludes: “Last week’s market rally was built on an appointment that never happened.
“Healey’s record on spending, paired with Burnham’s manifesto constraints, points toward higher taxes on wealth, not lower.
“This is the takeaway investors and wealth creators need to get from today, whatever the initial market reaction looks like.”
