Reeves' tax plans could drive one in eight UK businesses overseas

"One in eight UK small and medium-sized enterprise (SME) leaders are planning to relocate themselves, their companies, or both overseas, citing rising taxes and mounting regulatory costs, according to a new report by Rathbones. The research, released just weeks before Chancellor Rachel Reeves delivers her Autumn Budget, paints a bleak picture of business confidence across the UK's private sector. If realised, the potential exodus could involve around 680,000 firms out of the UK's 5.67 million SMEs"

"Among SME leaders planning to leave, one-third are considering moving their businesses abroad, with Ireland, Dubai, and the US emerging as the most popular destinations. Another 26 per cent of business owners expressed growing concern about the UK tax environment, even if they have no immediate plans to relocate. The survey found that dissatisfaction extends well beyond taxation, with two-thirds of SMEs believing that the government is not doing enough to encourage business growth"

One in eight UK SME leaders plan to relocate themselves, their companies, or both overseas, citing rising taxes and mounting regulatory costs. If realised, around 680,000 of 5.67 million UK SMEs could leave, potentially reducing jobs, tax revenues, and economic growth. One-third of intending leaders consider moving businesses abroad, with Ireland, Dubai, and the US most popular. Twenty-six percent of owners express growing concern about the UK tax environment even without relocation plans. Two-thirds of SMEs believe the government is not doing enough to encourage growth, while over 40% find current policies actively unsupportive. Higher employers' National Insurance, national living wage increases, and complex regulations are cited as barriers to growth. Business groups report small exporters struggling under post-Brexit trade rules.

Read at Business Matters