Levy the remittances! | Gawain Towler

Enough is enough. It’s time to slap a levy on remittances — those rivers of cash gushing out of Britain, sent abroad by migrants who’ve barely unpacked their bags. We’re not talking pocket change here; we’re talking billions, haemorrhaging from our economy every year, leaving our businesses gasping, our public services strained, and our taxpayers footing the bill. 

Let’s face the numbers head-on. In 2025, some 878,000 people, many of them fresh off the boat or plane, are using digital platforms like Remitly to send £1.127 billion out of the UK. That’s not a typo: £1.127 billion. Gone. Vanished. This isn’t money sitting in savings accounts or boosting British stocks — it’s cash ripped from our high streets, often via the black economy, siphoned off to places we’ll never see. And who’s doing the sending? Mostly lower-income migrants, the very folks whose wages could keep local economies ticking over, buying a pint at the pub, a loaf at the bakery, or a haircut at the barber. Instead, it’s wired away, leaving our small businesses to rot and our tax base to shrink.

Think about what £1.127 billion could do here. It’s money that could fund schools, fix potholes, or keep the NHS afloat. Instead, it’s propping up economies elsewhere while we scramble to plug the gaps. Every pound sent abroad is less VAT, less taxable spending, a pound less keeping Britain alive. And don’t kid yourself, this isn’t a one-off. Year after year, this torrent flows, and recent migrants, many arriving since the borders flung wide, are driving it. The Migration Observatory’s been banging on about this for ages: these aren’t the wealthy elite; they’re ordinary workers, often in low-paid jobs, draining liquidity we can’t afford to lose.

We can watch £1.127 billion, plus billions more, drain away, or we can fight back

Here’s where the blood really boils. These same remitters aren’t just taking — they’re using. Their kids crowd our classrooms, their ailments clog our surgeries, their needs tap our welfare pot. All this, paid for by you, me, and every British taxpayer who’s ever gritted their teeth through a payslip. Yet when it’s time to spend their earnings, they hit “send” and wave it goodbye. It’s a slap in the face. The stats don’t lie: lower-income migrants lean hard on public services, yet their money doesn’t stick around to replenish the pot. It’s not a fair exchange; it’s a heist, and we’re the mugs left holding the bag.

So, what’s the answer? A levy. Slap 10 to 20 per cent on every remittance leaving these shores. On £1.127 billion, that’s £112.7 million at the low end, £225.4 million if we go full throttle. That’s not loose change — it’s a war chest. Cash to pump back into the communities gutted by this outflow, to shore up businesses teetering on the edge, to ease the creaking strain on our public purse..

But it’s more than revenue. It’s a signal. A 10 to 20 per cent hit says: “Think twice before you drain us dry.” It nudges migrants to spend here, invest here, build here. Why should Britain be a cash machine for the world? If you’re earning on our soil, enjoying our infrastructure, then contribute, damn it. A levy isn’t spite, it’s self-respect. We’re not a charity; we’re a nation fighting to stand tall.

Now, let’s turn the spotlight on the real problem: the remittance giants — Remitly, Wise, WorldRemit — raking it in while Britain bleeds. These aren’t plucky little firms; they’re corporate cows. Remitly’s revenue’s exploded from $100 million in 2018 to $500 million in 2023, five times over in five years. Wise? Profits up 50 per cent in 2022 alone, revenues topping £500 million. WorldRemit’s not far behind, riding the same wave. Growth like that doesn’t happen by accident, it’s built on the back of every pound they shuttle out of here.

A levy hits them where it hurts. At 10 to 20 per cent per transaction, they’d either pass it on (making the remitters think twice) or swallow it (denting their bloated margins). But why stop there? A windfall tax — say, 25 per cent on their UK profits — could rake in millions more. These firms aren’t saints; they’re profiteers. Remitly’s not sending prayers with those transfers — it’s sending invoices. A windfall tax says: “You’ve had your feast; now pay the bill.” Or go further: a direct levy on every remittance they process. Force them to feel the cost of this economic exodus. 

And don’t think £1.127 billion’s the whole story. The Migration Observatory reckons informal channels, cash stuffed in suitcases, dodgy backroom deals, could be shifting another £15.2 billion. That’s right: billions more, slipping through the net, untaxed, untracked, unstoppable. A levy on digital transfers won’t catch it all, but it’s a start. Pair it with tech, blockchain, digital IDs for non citizens, whatever it takes, to clamp down on these shadow flows. It’s messy, it’s tough, but we can’t let Britain bleed from wounds we don’t even see. Something that it is important to note here is that the World Bank and the Reserve Bank of India (RBI) suggest that UK figures are massively underestimating the amount sent just to that one country. In 2023/4 the RBI estimates that £10.23bn came from the UK in remittances. 10.9 per cent of the total £94bn they receive annually. If this is true the leeching is even more serious than we think, and the revenue take even more necessary.

Cue the sob stories. “It’s cruel!” they’ll wail. “Migrants need to support their families!” Sure, but so do we. Britain’s not a global piggy bank, our families, our towns, our future come first. “It’s their money!” True, earned here, on our watch, using our roads, our hospitals, our safety nets. A 10 to 20 per cent slice isn’t theft; it’s rent. “The corporates will suffer!” Good. And the diplomatic fallout? Let other nations squawk, they’d do the same if the tables turned. This isn’t about feelings; it’s about facts.

Britain’s at breaking point. We can watch £1.127 billion, plus billions more, drain away, or we can fight back. A 10 to 20 per cent levy isn’t a suggestion; it’s a lifeline. It’s cash in the coffers, a brake on the bleed, a boot up the backside of the remittance racket. Recent migrants can’t keep taking without giving, nor can the corporates who enable them. Tax them, levy them, make them pay. Britain’s not a doormat. It’s time to stand up, slam the door, and keep our wealth where it belongs.