Half of UK business owners have indicated they would hire more staff if the Chancellor increases entrepreneurs’ relief in the upcoming Autumn Budget, according to new research by Helm, Britain’s largest enterprise network.
In a recent poll of 400 Helm business owners, 50% said they would expand their workforce under the more generous Entrepreneur Relief Plan. Additionally, 75% expressed that increased relief would lead them to reinvest in business growth.
The business owners surveyed represent a total turnover in excess of £8 billion, with the average business turnover among Helm members being around £21 million. These results appear just one week before Chancellor Rachel Reeves is due to unveil her autumn budget at the International Monetary Fund meeting.
The Entrepreneur Relief Scheme, now capped at £1m from the previous £10m under the last Conservative government, allows entrepreneurs to pay a reduced 10% tax on profits generated from the sale of their business. Typically, taxpayers with the highest rates face a 20% rate. However, as the Chancellor seeks to raise up to £40bn 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 taxes. Money for entrepreneurs.
Andreas Adamides, CEO of Helm, shared his members’ view, saying: “The message from our members to the Chancellor is clear. They are ready to invest in jobs, skills and economic growth in Britain. We look forward to delivering a Budget that supports Britain’s entrepreneurs.”
Nimesh Shah, chief executive of accountancy firm Blake Rotenberg, warned that the recent changes had weakened the UK’s reputation as a global leader in entrepreneurship. “Following Brexit, political instability, and tax rises, the luster has taken off the UK’s appeal. During the general election, Labor declared its support for small businesses, but talk of increasing capital gains tax and rumors of a National Insurance increase raised concerns among men. Business.
Shah added that the autumn budget represents a crucial moment for the government to “unlock growth” by supporting entrepreneurs, or risk diminishing the drive for innovation and investment with further tax rises. He urged the government to restore the previous limit of £10 million for business relief, indicating that “Britain is ready to support businesses.”
In a previous survey by Helm, 60% of its members said they would consider moving from the UK to avoid a potential increase in capital gains tax in the Autumn Budget, highlighting the delicate balance the government faces in supporting entrepreneurial growth while meeting financial needs.