Half of British entrepreneurs have indicated they would like to hire more staff if the Chancellor increases business aid in the upcoming autumn Budget, according to new research from Helm, Britain’s largest founders’ network.
In a recent poll of 400 business owners at Helm, 50% said they would expand their workforce under a more generous Entrepreneur Assistance Program. Additionally, 75% said a boost in lighting would prompt them to reinvest in business growth.
The business owners surveyed represent a combined turnover of over £8 billion, with the average business turnover among Helm members being around £21 million. The findings emerge just a week before Chancellor Rachel Reeves is due to unveil her autumn budget at the IMF meeting.
Entrepreneur’s Relief, now capped at £1 million compared to the previous £10 million under the last Conservative government, allows entrepreneurs to pay a reduced 10% tax on profits from the sale of their business. Normally, higher rate taxpayers face a 20% rate. However, with the Chancellor looking to raise up to £40 billion to tackle the national budget, there is speculation about further cuts to this support, now formally known as Business Asset Disposal Relief (BADR), which could increase capital gains tax for entrepreneurs.
Andreas Adamides, CEO of Helm, shared his members’ perspective and said: “The message from our members to the Chancellor is clear. They are willing to invest in jobs, skills and Britain’s economic growth. We look forward to her delivering a budget that supports British entrepreneurs.”
Nimesh Shah, CEO of accountancy firm Blick Rothenberg, warned that recent changes have damaged Britain’s reputation as a world leader in entrepreneurship. “After Brexit, political instability and tax increases, Britain’s appeal has faded. During the general election, Labor expressed its support for small businesses, but rumors of a capital gains tax increase and a rumored National Insurance increase have caused concern among business owners.”
Shah added that the Autumn Budget represents a crucial moment for the government to “unleash growth” by supporting entrepreneurs, or risk reducing the drive for innovation and investment through further tax increases. He urged the government to reinstate the previous £10 million cap on Entrepreneur’s Relief, signaling that “Britain is ready to support business.”
In an earlier Helm poll, 60% of members said they would consider moving from Britain to avoid a possible capital gains tax increase in the autumn budget. This highlights the delicate balance the government faces in supporting entrepreneurial growth while meeting fiscal needs.