Leading business figures and departing entrepreneurs caution that recent tax rises and regulatory changes threaten the UK’s position as a global hub for innovation, urging Chancellor Rachel Reeves to reconsider upcoming fiscal policies.
Sir Martin Sorrell, alongside a group of prominent entrepreneurs, has issued a strong plea to Chancellor Rachel Reeves ahead of the upcoming Budget, warning the government against policies that could stifle the spirit of entrepreneurship in the UK. The open letter highlights deep concerns among business leaders that escalating costs and tax rises introduced in last year’s Budget are damaging the country’s proud entrepreneurial tradition and prompting a worrying exodus of founders and investors.
The letter, signed by influential figures such as Nick Wheeler of Charles Tyrwhitt, John Roberts of AO World, and Steve Rigby of the Rigby Group, underscores how fiscal pressures including increased National Insurance Contributions and higher capital gains tax rates are driving successful entrepreneurs to seek more favourable environments abroad. They highlight that the UK has fallen to 23rd place globally in ease of starting a business, marking six consecutive years outside the top 20, a trend they attribute in part to government policy which they say must change to ‘empower the energy and dynamism of entrepreneurs, not stifle or constrain them.’
This warning comes amid high-profile departures from the UK by leading business figures. In October, Nik Storonsky, co-founder and CEO of the financial technology giant Revolut, formally changed his residency from the UK to the United Arab Emirates. This move follows significant tax changes, notably the abolition of the UK’s ‘non-domiciled’ tax regime that had allowed foreign nationals to shield overseas income from UK taxation. Storonsky’s stake in Revolut, valued at billions of dollars, and the UAE’s regime, offering no personal income tax, were significant factors influencing his decision to relocate. His shift of residency has been widely reported by financial and tech news outlets, confirming the growing appeal of the UAE as a tax haven for wealthy entrepreneurs increasingly disillusioned with UK tax policy.
Similarly, Herman Narula, head of the tech company Improbable and recognized as Britain’s richest self-made entrepreneur under 40, has also revealed plans to move to Dubai. Narula’s decision was reportedly influenced by the UK Government’s proposal of an ‘exit tax’ designed to dissuade wealthy individuals from moving abroad to avoid tax obligations. Speaking critically of these measures, Narula described the government’s approach as ‘anti-entrepreneur’ and warned that such taxes could deter future entrepreneurial ventures from even starting in the UK.
The collective concern from the entrepreneurial community aligns with warnings issued last October from the UK retail and hospitality sectors, which cautioned that thousands of jobs could be lost if plans to increase property taxes on larger shops, pubs, and hotels went ahead.
The current environment, characterised by intensified tax burdens and regulatory uncertainty, is thus threatening the UK’s standing as a competitive international business hub. The signatories and departing entrepreneurs paint a picture of a country at risk of alienating the very drivers of innovation and economic growth, urging the government to reconsider its fiscal approach in the next Budget.
As the government prepares its fiscal roadmap, the challenge remains to balance tax revenues and public spending needs with creating an environment where entrepreneurs feel encouraged to found, grow, and sustain enterprises in the UK rather than look overseas for more favourable conditions.
📌 Reference Map:
- [1] (Daily Mail) – Paragraphs 1, 2, 3, 4, 7, 8, 9
- [2] (Forbes) – Paragraphs 5, 6
- [3] (The National) – Paragraph 7
- [4] (Finextra) – Paragraph 5
- [5] (Irish Times) – Paragraph 6
- [6] (Sifted) – Paragraph 6
- [7] (FinanceFeeds) – Paragraph 5
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
6
Notes:
The narrative presents recent events, including the relocation of Nik Storonsky, co-founder of Revolut, from the UK to the UAE in October 2024, and Herman Narula’s plans to move to Dubai. These developments have been reported by reputable outlets such as Forbes and The National. ([forbes.com](https://www.forbes.com/sites/iainmartin/2025/10/07/revolut-billionaire-ceo-is-the-latest-ultra-wealthy-founder-to-leave-london-after-tax-change/?utm_source=openai)) However, the Daily Mail article appears to be a republished version of earlier reports, with no new information or updates. This suggests that the content may be recycled, potentially affecting its freshness score. Additionally, the article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.
Quotes check
Score:
5
Notes:
The article includes direct quotes from business leaders expressing concerns about UK tax policies and their impact on entrepreneurship. These quotes appear to be consistent with statements made in earlier reports, indicating potential reuse of content. However, without access to the original sources, it’s challenging to confirm the exact wording and context of these quotes.
Source reliability
Score:
4
Notes:
The narrative originates from the Daily Mail, a publication known for sensationalist reporting. The article references statements from business leaders and reports on recent events, but the lack of direct citations and reliance on secondary sources raises concerns about the reliability of the information presented.
Plausability check
Score:
7
Notes:
The claims about the relocation of Nik Storonsky and Herman Narula are plausible and have been reported by reputable sources. However, the article’s reliance on recycled content and lack of new information diminish its overall credibility. The tone and language used in the article are consistent with typical corporate or official language, suggesting that the content is not synthetic.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recycled content from earlier reports without new information or updates, affecting its freshness and reliability. The reliance on secondary sources and lack of direct citations further diminish its credibility. While the claims about the relocation of Nik Storonsky and Herman Narula are plausible and have been reported by reputable sources, the overall quality of the article is compromised.
