Amid mounting concerns over proposed tax increases, UK business owners threaten to relocate and halt hiring, signalling a potential economic slow-down ahead of the Autumn Budget.
The upcoming UK Budget is raising significant concerns among business owners, with research indicating a growing readiness among some to relocate their operations abroad if tax increases targeting wealth and capital gains materialise. A survey conducted by Smith & Williamson of 500 business owners with turnovers exceeding £5 million found that 42 per cent are worried about the potential impacts of the Budget, and an equal proportion would consider leaving Britain if a wealth tax is introduced. Two in five respondents also expressed concerns about rises in Capital Gains Tax (CGT) rates and the curtailment of inheritance tax reliefs, such as Business Relief, which are crucial for succession planning.
The backdrop of these concerns includes sharp rises in costs driven by recent tax increases, soaring energy prices, and persistent inflationary pressures. Toby Tallon, a tax partner at Smith & Williamson, warned that further tax hikes aimed at successful entrepreneurs risk prompting a wave of business exits, undermining the UK’s appeal as a hub for wealth creators. “The Chancellor must put business owners at the heart of the next Budget,” Tallon urged, calling for policies that balance fiscal responsibility with support for entrepreneurs to maintain an open and competitive business environment.
The potential tax burden appears to have already affected employment decisions. Some 37 per cent of business owners surveyed revealed they might make redundancies within the next year if they face additional tax hikes, while 39 per cent are anticipating a hiring freeze. These sentiments reflect broader trends in the UK economy, where confidence among business leaders across sectors is notably fragile. Data from the British Chambers of Commerce (BCC) shows that UK business morale has hit its lowest point since late 2022 following a raft of tax increases introduced in Finance Minister Rachel Reeves’ October Budget, which included £40 billion in revenue-raising measures primarily through social security charges on employers.
Industry leaders have emphasised the tangible consequences of these policies on investment and employment. The Institute of Directors (IoD) reported a sharp decline in business confidence to levels not seen since the onset of the COVID-19 pandemic in 2020. IoD Chief Economist Anna Leach criticised the Budget for undermining private sector investment and workforce development, noting that plans for investment and hiring fell steeply in November. The broader business community, including the Confederation of British Industry (CBI), has echoed calls for a reversal or pause in tax rises to restore confidence and stimulate growth. Louise Hellem, CBI’s chief economist, urged the government to avoid further increasing the business tax burden during the current Parliament.
The adverse impact on employment is further substantiated by recent employer surveys. The BCC highlighted that nearly one-third of small and medium-sized enterprises have either cut jobs or are considering redundancies due to increased National Insurance Contributions (NICs), which rose sharply in April. This unexpected cost strain has led to a decline in business expansion plans, compounding economic uncertainty.
Reeves, in a pre-Budget speech, made clear that her approach would prioritise fiscal responsibility over popularity, refusing to rule out further tax increases. Markets have reacted nervously to these signals, with the pound falling to a seven-year low and stock indices such as the FTSE 100 and FTSE 250 experiencing significant declines. Business leaders like Tim Richards, founder of cinema chain Vue, have voiced frustration, describing the environment as “squeezed” and highlighting the difficulty in hiring due to rising costs imposed by government policy, which he argues ultimately hurts those the government aims to assist.
The cumulative evidence paints a picture of an increasingly strained business sector, where the twin pressures of tax rises and external economic challenges are eroding confidence and prompting both caution in hiring and, in some cases, consideration of relocating operations beyond the UK’s borders. As the Chancellor prepares for the Autumn Budget, the message from business owners and economic analysts alike is clear: careful calibration of tax policy is essential to avoid driving away the entrepreneurs and investors vital to the UK’s economic future.
📌 Reference Map:
- [1] (Daily Mail) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 6, Paragraph 8
- [2] (Evelyn Partners) – Paragraph 1
- [3] (Reuters) – Paragraph 4
- [4] (Reuters) – Paragraph 5
- [5] (Reuters) – Paragraph 6
- [6] (CNBC) – Paragraph 7
- [7] (CNBC) – Paragraph 6, Paragraph 7
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:
8
Notes:
The narrative references a survey by Smith & Williamson, conducted in October 2024, indicating that 42% of business owners are concerned about potential tax increases. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/almost-half-of-business-owners-would-consider-leaving-uk-if-budget-delivers-tax-blows/?utm_source=openai)) This aligns with the report’s publication date of November 5, 2025, suggesting timely reporting. However, the Daily Mail’s coverage may be based on a press release, which typically warrants a high freshness score. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/almost-half-of-business-owners-would-consider-leaving-uk-if-budget-delivers-tax-blows/?utm_source=openai))
Quotes check
Score:
7
Notes:
The report includes a quote from Toby Tallon, a tax partner at Smith & Williamson, warning that further tax hikes could prompt business exits. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/almost-half-of-business-owners-would-consider-leaving-uk-if-budget-delivers-tax-blows/?utm_source=openai)) A search for this quote reveals no earlier usage, indicating potential originality. However, without direct access to the original press release, it’s challenging to confirm if the quote is used verbatim or paraphrased.
Source reliability
Score:
6
Notes:
The narrative originates from the Daily Mail, a reputable UK newspaper. However, the reliance on a press release from Smith & Williamson introduces potential bias, as press releases are often promotional and may not undergo the same editorial scrutiny as independent reporting.
Plausability check
Score:
8
Notes:
The claims about business owners’ concerns over tax increases are plausible and align with broader economic discussions. Similar sentiments have been reported by other outlets, such as Evelyn Partners’ survey indicating that nearly half of business owners would consider relocating if tax changes are unfavourable. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/almost-half-of-business-owners-would-consider-leaving-uk-if-budget-delivers-tax-blows/?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents plausible concerns from business owners regarding potential tax increases. While the information is timely and aligns with other reports, the reliance on a press release and the Daily Mail’s editorial practices warrant further verification. The originality of the quotes is uncertain without access to the original press release, and the source’s reliability is moderate due to potential biases in press releases.
