Half of UK business owners promise to hire if the Chancellor improves business freedom
Half of UK business owners have indicated they will hire more workers if the Chancellor extends Entrepreneurship Relief in the upcoming Autumn Budget, according to new research by Helm, Britain’s largest network of entrepreneurs.
In a recent survey of 400 business owners in Helm, 50% said they would increase their workforce under the liberal Entrepreneur Assistance program. Additionally, 75% expressed that increased liberalization would lead them to reinvest in business growth.
The business owners surveyed represent a combined turnover in excess of £8 billion, with an average business turnover among Helm members of around £21 million. The findings come just a week before Chancellor Rachel Reeves presents her Autumn Budget at the IMF meeting.
Entrepreneur’s Relief, now up to £1 million from its previous £10 million under the last Conservative government, allows entrepreneurs to pay a reduced tax of 10% of the profit on the sale of their business. Generally, higher rate taxpayers face a rate of 20%. However, as the Chancellor seeks to raise up to £40 billion to tackle the national budget, there is speculation about further cuts to this relief, now officially known as Business Asset Disposal Relief (BADR), which could increase capital gains tax for businesses.
Andreas Adamides, CEO of Helm, shared the opinion of his members, saying, “The message from our members to the Chancellor is clear. They are ready to invest in jobs, skills, and the growth of the British economy. We look forward to him delivering a budget that supports British businesses.”
Nimesh Shah, CEO of accountancy firm Blick Rothenberg, warned that the latest changes were damaging the UK’s reputation as a world leader in business. “After Brexit, political instability, and tax increases, the spotlight has already been drawn to the UK. During the general election, Labor announced its support for small businesses, but the talk about the increase in capital gains tax and the rumored increase in National Insurance caused concern for entrepreneurs.
Shah added that the Autumn Budget represents a critical moment for the government to “boost growth” by supporting entrepreneurs, or risk reducing the impetus for innovation and investment through further tax increases. He called on the government to restore the previous £10 million cap on Entrepreneur’s Relief, showing that “Britain is ready to take business back.”
In a previous Helm survey, 60% of its members said they would consider moving to the UK to avoid a rise in Capital Gains Tax in the Autumn Budget, highlighting the delicate balance the government faces in supporting business growth while meeting funding needs.
