More than 90 leading business figures and Members of Parliament have written to Chancellor Rachel Reeves urging her to halt what they describe as a “relentless creep” of tax increases affecting Britain’s entrepreneurs, warning that continued pressure could push founders to relocate their businesses overseas.
The signatories include prominent names from across UK industry such as Luke Johnson, chairman of Gail’s Bakery; Johnnie Boden, founder of fashion brand Boden; Marcel Khan, chief executive of Franco Manca and The Real Greek; and Andreas Adamides, chief executive of Helm. They are joined by 19 MPs from across the political spectrum, including senior Conservative figures Dame Priti Patel, Andrew Griffith, and Chris Philp.
The letter, organised by Helm, a network representing scale-up founders, launches a new campaign titled “Stop the Creep,” reflecting growing frustration among entrepreneurs over recent tax policy changes. It comes amid rising concern within the business community that measures targeting capital and investment are undermining the UK’s competitiveness.
While Reeves previously pledged to make the UK the most attractive place in the world to start and grow a business, the letter argues that recent policy decisions are moving in the opposite direction. It highlights what the signatories describe as a gradual but cumulative increase in tax burdens, including higher employers’ National Insurance contributions and changes to capital gains tax on dividends.
The letter also points to adjustments in key relief schemes. Business Asset Disposal Relief, which applies when founders sell their companies, has risen from 10 per cent to 14 per cent in April 2025 and is set to increase further to 18 per cent in 2026. Business Property Relief and Agricultural Property Relief have also been scaled back, adding to concerns about long-term investment incentives.
According to the letter, only around 40 per cent of UK businesses survive beyond five years, and just 1,400 companies sold for more than £1 million in 2024. For those successful enough to exit, founders now face a significantly higher tax burden than in previous years, despite taking substantial financial risks.
The signatories argue that while the UK is increasing taxes on entrepreneurs, other countries are actively competing for their relocation. They cite the United States, which offers tax exemptions on early gains from business sales, as well as jurisdictions such as the United Arab Emirates, Portugal, Cyprus and Singapore, all of which have positioned themselves as low-tax hubs for business owners.
Concerns are also growing that the UK could become what the letter describes as an “incubator economy,” where companies are created domestically but ultimately scale or relocate abroad. Some estimates referenced by the group suggest that a significant share of UK firms could consider moving operations if tax pressures continue.
Despite the warnings, the letter stresses that Britain remains a strong environment for entrepreneurship, urging the Government to act before further damage is done to investor confidence and business retention.
Helm’s Andreas Adamides said founders were being discouraged by what he called a “relentless” rise in taxation, arguing that the policy direction sends the wrong signal to those building high-growth companies.
As the next Budget approaches, pressure is expected to intensify on the Treasury to clarify its long-term approach to business taxation and investment incentives.
