One in five of Britain’s fastest growing start-ups may relocate abroad within three years amid concerns over regulatory hurdles, funding challenges, and political uncertainty, prompting calls for urgent government action to sustain the UK’s innovation edge.
One in five of Britain’s fastest growing start-ups could relocate abroad within the next three years unless the Government intensifies its efforts to create a more favourable environment for business growth, according to new research by Virgin Media O2. The report highlights a growing concern among entrepreneurs about regulatory hurdles, political uncertainty, funding challenges, infrastructure deficits, and talent shortages, all of which threaten the UK’s status as a global hub for innovation.
Virgin Media O2’s ‘Growth Signals’ report, based on a survey of over 2,000 high-growth firms, including those in cutting-edge sectors like artificial intelligence and quantum technology, reveals that while 85 percent of start-ups want to remain in Britain, a significant portion sees the US, Singapore, and specific European locales as more attractive destinations for scaling their businesses. The looming risk of a “start-up exodus” echoes wider economic shifts, following a £100 billion capital outflow from London’s markets last year and 88 companies delisting from the London Stock Exchange in 2024 to pursue growth overseas.
Lutz Schüler, Virgin Media O2’s chief executive, emphasised the unique potential of the UK to nurture ambitious, home-grown talent but warned that too many firms cannot envision a pathway to scale domestically. He noted the necessity of decisive government action to avoid decline and position Britain as a leader in the AI-driven economic revolution. Among the report’s key recommendations are agile regulatory frameworks, enhanced capital incentives, the development of future-proof digital networks, AI-ready talent, and long-term policy certainty to build confidence within the entrepreneurial community.
This urgency emerges amid a backdrop of economic strain for British businesses. Recent changes, such as hikes in employer national insurance contributions and wage pressures, have added to operational costs, drawing criticism from business groups like the Confederation of British Industry. They have urged the government to reconsider further tax increases, warning they could stall Chancellor Rachel Reeves’ ambitions for economic growth.
Despite the challenges, there remains a notable undercurrent of optimism. Nearly half of the companies surveyed praised the UK’s high-quality research institutions, sound international business environment, and robust legal and regulatory systems as strengths that could underpin long-term economic prosperity if properly supported.
Virgin Media O2 itself is navigating a difficult market environment. Reports indicate the operator lost 118,400 mobile contract customers in the second quarter of 2024, attributed in part to a slowdown in innovation within high-end smartphones. Fixed-line customer numbers also fell by 13,600, although these declines were partially mitigated by the expansion of its fibre network, which now reaches five million premises. CEO Lutz Schüler has stressed ongoing investments in networks and services as essential to staying competitive in an evolving telecommunications landscape, particularly as rivals like BT’s Openreach have also experienced significant customer losses.
Taken together, these findings illustrate a critical juncture for the UK economy. While the country retains many fundamental assets conducive to innovation and growth, the concerns voiced by entrepreneurs and the pressures on key industries such as telecoms suggest that without clear, supportive policies and a stable business environment, Britain risks losing vital talent and enterprise to more attractive international markets.
📌 Reference Map:
- [1] (Daily Mail) – Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
- [2] (Reuters) – Paragraphs 11, 12
- [3] (Reuters) – Paragraph 11
- [4] (Reuters) – Paragraph 11
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:
7
Notes:
The narrative appears to be original, with no evidence of prior publication. The Daily Mail article is dated November 13, 2025, and is not found elsewhere. The report is based on Virgin Media O2’s ‘Growth Signals’ report, which is typically a fresh release. However, the article includes data from 2024, which may affect the freshness score. The inclusion of updated data alongside older material suggests a moderate freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative does not appear to be recycled or republished across low-quality sites. The Daily Mail is a reputable source, lending credibility to the report.
Quotes check
Score:
8
Notes:
The quotes attributed to Lutz Schüler, Virgin Media O2’s chief executive, are not found in earlier material, indicating potential originality. No identical quotes appear in prior publications. The wording of the quotes matches the Daily Mail article, with no variations identified.
Source reliability
Score:
7
Notes:
The narrative originates from the Daily Mail, a reputable organisation. The report is based on Virgin Media O2’s ‘Growth Signals’ report, which is typically a fresh release. However, the inclusion of data from 2024 may affect the freshness score. The Daily Mail is a reputable source, lending credibility to the report.
Plausability check
Score:
7
Notes:
The claims about start-ups potentially relocating abroad within three years are plausible and align with broader economic concerns. The narrative includes specific data points, such as the £100 billion capital outflow from London’s markets last year and 88 companies delisting from the London Stock Exchange in 2024, which are verifiable. The tone and language are consistent with typical corporate and official communications. No excessive or off-topic details are present. The narrative does not exhibit unusual drama or vagueness.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is original, with no evidence of prior publication. The quotes attributed to Lutz Schüler are unique and not found elsewhere. The source, the Daily Mail, is reputable, and the claims made are plausible and supported by verifiable data. The inclusion of data from 2024 may affect the freshness score, but overall, the narrative passes the fact-checking criteria.
