Month: October 2024

In her debut Budget, Chancellor Rachel Reeves has introduced £40bn in tax hikes, largely focused on increasing employer National Insurance Contributions (NICs) and implementing a temporary repatriation facility for non-domiciled individuals.
According to Nimesh Shah, CEO of Blick Rothenberg, while pre-Budget rumours had suggested sweeping tax changes, the actual announcements were more focused, though still significant in impact.
The primary tax increase is a £25bn rise from NIC changes. Starting April 2025, employer NICs will jump by 1.2 percentage points to 15%, with a lower NIC threshold of £5,000. For businesses, this means an additional cost of £615 per employee, creating substantial expense for SMEs. A business with five employees earning £50,000 each will see their NIC bill increase by over £5,500.
Capital Gains Tax (CGT) also saw adjustments, with rates rising to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. Although CGT changes were less severe than anticipated, entrepreneurs will feel the impact, as the Business Asset Disposal Relief’s tax-saving potential falls to £60,000 by 2026. The carried interest regime for private equity also faces a hike, effectively increasing CGT on carried interest to 32% from April 2025, and further bringing it within the income tax and NIC scope from 2026.
The Budget introduced a temporary repatriation facility for non-domiciled individuals, allowing them to remit overseas funds at a reduced 12% tax rate for two years. This initiative is expected to generate £12.7bn in revenue. However, the move has left many non-doms considering their options, especially with the looming inheritance tax implications of previously announced reforms.
Family businesses face new challenges with a £1 million cap on Business Property Relief and a 50% discount thereafter. Although these changes take effect in 2026, Shah advises early planning, noting that anti-forestalling measures on lifetime transfers could complicate efforts.
Shah’s overall take on the Budget is mixed; while it avoided the more severe changes that many feared, it leaves room for more tax hikes in the coming Spring Budget. Businesses and investors will need to monitor developments closely as they navigate the evolving fiscal landscape.
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Budget 2024: £40bn tax hike through NIC and Capital Gains Tax leaves businesses on edge

The UK’s latest Budget has cast uncertainty over its reputation as a hub for entrepreneurship, with business leaders warning of a potential exodus of talent and investment.
Shalini Khemka CBE, CEO of the entrepreneurial community E2E, expressed disappointment in the Budget’s new tax measures, which she believes will deter entrepreneurs and business owners. “Today’s budget shows that the current government is not the government for business,” she said. “The changes announced by Chancellor Rachel Reeves will target the very people who help grow the economy.”
The Budget includes several tax adjustments that impact both small and large businesses, including a rise in Capital Gains Tax, an increase in employers’ National Insurance contributions to 15%, and a cap on Business Property Relief at £1 million with a 50% discount on the remainder. Business Asset Disposal Relief (previously Entrepreneurs’ Relief) and inheritance tax (IHT) on AIM-listed shares will also be subject to new limitations. AIM shares, now subject to a 20% IHT rate, will see a cut from the prior 40% relief, a move Khemka warns could reduce liquidity and investment options for SMEs.
In addition, the abolishment of Non-Dom status, an increase in stamp duty, and the introduction of VAT on private schools add further barriers for international entrepreneurs considering the UK as a base for their ventures. Khemka argues these measures create an environment unfavourable to overseas talent: “This sends a clear message that we are not welcoming to entrepreneurs from overseas who wish to start their businesses in the UK,” she said.
The response from the business community has been swift. According to Khemka, many entrepreneurs in her network now see relocating abroad as an increasingly attractive option. “For many, this budget has solidified any confusion around whether to move abroad, and they will seek to relocate as quickly as possible,” she noted, predicting a potential downturn in growth as the UK becomes less competitive.
With rising taxes and reduced reliefs, the UK’s reputation as a pro-business destination faces significant challenges. Experts warn that without a more supportive approach, the UK may struggle to retain the talent and innovation essential for economic growth.
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Entrepreneurs set to leave the UK as it is no longer the country for business

Chancellor Rachel Reeves has introduced a record-breaking £40bn tax rise in her first Budget, which the Office for Budget Responsibility (OBR) warns could stifle long-term economic growth.
According to the OBR, Britain’s economy will expand by just over 1% this year, peaking at 2% in 2025, but remaining below its potential growth rate of 1.66% thereafter.
The biggest change comes from a 1.2 percentage point hike in National Insurance contributions (NICs) for employers, bringing the rate to 15% from April and expected to raise £25bn. This move has been met with concern from business leaders and analysts who fear it will add to the financial strain on companies.
“This is a tough Budget for business,” said Rain Newton-Smith, CBI Chief Executive. “While the Corporation Tax Roadmap offers stability, the NICs increase and other cost hikes will hurt businesses, making it more costly to hire or raise wages.” Newton-Smith emphasised that private sector investment is essential to achieving the UK’s growth targets and urged the government to work closely with businesses to unlock potential investments, particularly in infrastructure and green energy.
The Budget also includes an increase in Capital Gains Tax (CGT), with the lower rate rising from 10% to 18% and the higher rate from 20% to 24%, while rates on residential property remain the same. Muj Choudhury, CEO of RocketPhone, expressed concern over the CGT changes, particularly their impact on Britain’s tech and AI sectors, which depend on high-risk capital for early-stage growth. “This reform sends the wrong message as we try to establish the UK as a global AI hub. Increasing CGT creates barriers for tech entrepreneurs, who are already hesitant given rising taxes and costs,” he said.
For small businesses, the rise in NICs is likely to present significant challenges. Todd Davison, MD of Purbeck Personal Guarantee Insurance, warned that the tax hike could be “a fatal blow” for small enterprises still recovering from the pandemic. “This increase will make it more costly to run a business and could limit hiring, raise prices, or even force some owners to close down,” he added, noting that businesses in labour-intensive sectors like hospitality, retail, and leisure may struggle most.
Meanwhile, the Budget includes positive news for small businesses, with the Employment Allowance increase easing the NIC burden for companies with smaller payrolls. Michelle Ovens CBE, founder of Small Business Britain, noted that while small businesses may feel the impact of the NIC and minimum wage hikes, many will benefit from business rates relief and reduced tax pressure on high street companies. “There’s reason for optimism,” she said. “The government is clearly recognising the contribution of small, local businesses.”
The freeze on inheritance tax thresholds has also been extended until 2030, drawing mixed reactions. Ms Reeves defended the tax hikes, claiming they were necessary to address “black holes” in public finances and to fund long-overdue compensation for victims of the Post Office Horizon and infected blood scandals.
While Reeves’s Budget aims to shore up public finances and fund critical sectors like healthcare—with an extra £22.6bn for the NHS—many business leaders worry the measures could hamper the UK’s growth ambitions. Stephen Phipson, Chief Executive of Make UK, acknowledged that while the Budget presents challenges, especially for SMEs, the inclusion of an Industrial Strategy and continued support for programmes like Made Smarter offers a clear path for growth in manufacturing.
As businesses across the UK absorb the effects of the Budget, the long-term impact on investment, hiring, and overall economic stability remains uncertain. The £40bn tax increase underscores the government’s commitment to balancing the books, but critics argue it risks undermining Britain’s competitive edge and discouraging the private sector investment needed to drive sustained growth.
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Budget 2024: Record £40bn tax hike set to slow UK economic growth, warns OBR

Wealthy individuals threatening to leave the UK to avoid expected tax increases should “f— off,” according to Dale Vince, green energy tycoon and major Labour donor.
Vince, who has donated £5 million to Labour, dismissed as “profoundly stupid” the idea that higher taxes could harm UK entrepreneurship, asserting that those solely interested in low taxes are welcome to leave.
“If people only live here because they pay less tax, they should f— off,” Vince said. “This is a brilliant country. There’s no way people won’t live here because of a fairer tax system.” His comments come as Chancellor Rachel Reeves prepares to announce tax increases aimed at addressing a £40 billion fiscal gap in her Autumn Budget, with wealthy taxpayers likely to bear the brunt. Measures may include capital gains tax increases and inheritance tax reform.
Britain’s top 100 taxpayers contributed £3.9 billion in capital gains and income tax in 2022/23, making them a crucial target. However, new data indicates that over 6,000 UK millionaires are considering relocating to the EU by year-end to escape potential tax hikes. Among them is Charlie Mullins, the founder of Pimlico Plumbers, who has put his £12 million London penthouse up for sale, stating he plans to leave to avoid a financial “raid.”
While other prominent Labour donors like South African businessman Gary Lubner and Lord Sainsbury have remained silent on the tax debate, Vince stands firm, arguing for a fairer tax structure.
Vince also criticised those opposing the net-zero agenda, especially Nimbys resistant to infrastructure projects like electricity pylons. “Countryside dwellers need to accept that this is a contribution to our national economy,” he said, emphasising the importance of green infrastructure.
A former nomad who founded Ecotricity in 1995, Vince has built a £100 million fortune through renewable energy and innovative ventures, including Skydiamond, a lab-grown diamond company, and Forest Green Rovers, a vegan football club. Known for his outspoken views, Vince is unafraid of controversy, once famously rebuffing a proposal from the late turkey magnate Bernard Matthews, likening his poultry operations to “a concentration camp.”
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Top Labour donor Dale Vince says rich fleeing capital gains tax raid can ‘f— off’

Data centre investment in the UK is being stymied by delays in securing electricity supply, according to David Sleath, CEO of Segro, one of the country’s largest commercial property developers.
Speaking on Times Radio, Sleath expressed his frustration at the long wait times for grid connections, which can stretch to several years, preventing Segro from investing “hundreds of millions and more” into new data centres.
Segro, which already operates 35 data centres across the UK, has ambitious plans to expand, but these are hindered by bottlenecks in the national electricity grid. “The single biggest constraint is access to power,” said Sleath, highlighting that these delays are holding back not only Segro’s growth but also the UK’s digital advancement.
Data centres, which support essential digital services from streaming and online shopping to AI development, require substantial power for their high-energy equipment, which needs specialised grid connections to operate safely. However, the current queue system for obtaining a grid connection is described by Sleath as “archaic,” with developers facing years of delay for upgraded capacity.
Beyond immediate needs, Sleath voiced concerns about the UK’s longer-term energy security. While he sees wind and solar power as critical components of the country’s energy strategy, he suggests that further investment in alternative sources, such as nuclear energy, or significant advancements in battery storage will be necessary to meet future demands.
The government has recently taken steps to recognise data centres as critical national infrastructure, with technology secretary Peter Kyle’s move last month to classify these facilities as such. This decision comes as several American firms plan to invest £6.3 billion in new UK data centres, underscoring the demand for reliable infrastructure to support the burgeoning digital economy.
National Grid has stated its commitment to improving the connection process, pledging to work with the National Energy System Operator (Neso), Ofgem, and the government to reform the connection system and prioritise projects that support net-zero goals and economic growth. A government spokesperson echoed this commitment, noting that efforts are underway to clear stalled projects and streamline access for data centres seeking grid connections.
As demand for data centres continues to rise, the UK faces a critical moment in upgrading its infrastructure to support both immediate needs and long-term digital ambitions.
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UK data centre investment stalled by lack of electricity supply

For the second year running, delivery firm Evri has been named the UK’s worst-performing parcel delivery company, with nearly half of its customers reporting issues.
According to Ofcom, the UK’s postal regulator, 44% of customers who used Evri in the last six months encountered delivery problems — the highest rate among all 10 companies assessed.
Formerly known as Hermes, Evri rebranded two years ago amid widespread criticism over parcel mishandling. Common complaints include delays, parcels left in incorrect locations, and delivery drivers failing to adequately notify recipients by knocking or ringing doorbells.
Ofcom’s findings, based on a survey of more than 4,000 customers, revealed that only 32% of Evri users were satisfied with how their complaints were handled. However, the company has shown some improvement; its satisfaction score for resolving complaints has increased from 26% in 2023 to 32% this year.
Evri’s spokesperson commented, “2024 has been a year of significant investment and listening to our customers to improve our service. Our ambition is that every customer’s experience with Evri is a positive one.” They noted that despite the challenges, Evri’s rising parcel volumes indicate ongoing trust from both customers and retail clients.
Rival delivery company Yodel ranked second lowest, with a 38% satisfaction rate, while Royal Mail, which is undergoing a £3.6 billion acquisition by Czech billionaire Daniel Kretinsky, scored 43%. Royal Mail’s performance has seen a partial recovery in parcel volumes after last year’s strike-related disruptions, though it continues to grapple with losses and productivity issues.
At the other end of the spectrum, Amazon led the satisfaction rankings with a 56% approval rating, closely followed by DHL at 55%.
The Ofcom review also highlights an overall increase in customer satisfaction when contacting delivery companies about issues, rising from 41% in 2023 to 44% this year. Additionally, complaints about delayed or non-delivered parcels have decreased, suggesting gradual improvement in industry standards.
However, the regulator remains concerned that disabled customers are still more likely to face challenges in the delivery process compared to other users, underscoring the need for couriers to ensure accessible and reliable service for all.
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Evri named UK’s worst delivery service as nearly half report issues

Former Chancellor Jeremy Hunt has criticised the Office for Budget Responsibility (OBR) for allegedly compromising its political impartiality, as it prepares to release a review potentially critical of the Conservative government on budget day.
The review is expected to address claims by Chancellor Rachel Reeves of a £22 billion fiscal gap left by the previous administration.
According to Reeves, this financial “black hole” in public finances only became apparent upon her entry into office, alleging that the Tory government withheld key information from the OBR. The review, to be published on the same day as the Autumn Budget, will focus on the transparency of departmental spending and the past government’s provision of data to the OBR.
Hunt voiced his concerns about the timing, stating, “I do not believe publishing a review with criticisms of the main opposition party on the day of a budget is consistent with political impartiality.” He further claimed that no Conservative ministers were consulted, labelling the review as a “political intervention.”
The timing has led Hunt to suggest that the OBR might have “pre-judged the outcome,” casting doubt on its neutrality. The release coincides with Reeves’ anticipated budget, which is expected to include tax hikes and spending cuts aimed at addressing the alleged £22 billion fiscal shortfall.
OBR chairman Richard Hughes defended the timing, clarifying that the report focuses on “the institutional relationship between the OBR and Treasury” and the “adequacy of the information and assurances” previously provided. He explained that, given the potential market sensitivity of the report’s contents, it was neither necessary nor appropriate to share the conclusions with previous ministers before publication.
As the OBR’s findings are set to coincide with Reeves’ budget announcements, debates over fiscal transparency and the watchdog’s role in overseeing government accountability are likely to intensify. The report may add pressure on the Conservative party, with implications for both government transparency and the autonomy of independent fiscal institutions.
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Jeremy Hunt criticises OBR for timing of review release on budget day

Half of the UK’s business owners have indicated they would hire more staff if the Chancellor increases Entrepreneur’s Relief in the upcoming Autumn Budget, according to new research by Helm, Britain’s largest founder network.
In a recent poll of 400 business owners at Helm, 50% stated they would expand their workforce under a more generous Entrepreneur’s Relief scheme. Additionally, 75% expressed that a boost in relief would lead them to reinvest in business growth.
The surveyed business owners represent a combined turnover exceeding £8 billion, with the average business turnover among Helm members around £21 million. The findings emerge just a week before Chancellor Rachel Reeves is set to unveil her Autumn Budget at the IMF meeting.
Entrepreneur’s Relief, now capped at £1 million from its previous £10 million under the last Conservative government, allows entrepreneurs to pay a reduced 10% tax on profits from selling their businesses. Typically, higher-rate taxpayers face a 20% rate. However, as the Chancellor seeks to raise up to £40 billion to address the national budget, there is speculation around further cuts to this relief, now formally known as Business Asset Disposal Relief (BADR), which may increase capital gains taxes on entrepreneurs.
Andreas Adamides, CEO of Helm, shared his members’ perspective, stating, “The message from our members to the Chancellor is clear. They are ready to invest in jobs, skills, and the economic growth of Britain. We look forward to her delivering a budget that supports Britain’s entrepreneurs.”
Nimesh Shah, CEO of accounting firm Blick Rothenberg, warned that recent changes have dampened the UK’s reputation as a global leader in entrepreneurship. “Following Brexit, political instability, and tax increases, the gloss has come off the UK’s appeal. During the General Election, Labour proclaimed its support for small businesses, but the talk of a capital gains tax hike and a rumoured National Insurance increase has raised concerns among entrepreneurs.”
Shah added that the Autumn Budget represents a critical moment for the government to “unleash growth” by supporting entrepreneurs, or risk diminishing the drive for innovation and investment with further tax hikes. He urged the government to reinstate the previous £10 million limit on Entrepreneur’s Relief, signalling that “Britain is ready to back business.”
In an earlier Helm survey, 60% of its members said they would consider relocating from the UK to avoid a potential Capital Gains Tax increase in the Autumn Budget, highlighting the delicate balance the government faces in supporting entrepreneurial growth while meeting fiscal needs.
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Half of UK business owners pledge to hire if Chancellor boosts Entrepreneur’s relief

Enate, founded by Kit Cox in 2011, is an enterprise AI and orchestration platform designed to help businesses streamline their operations.
Based in Cheltenham, Enate was born out of Kit’s frustration with the outdated tools, like spreadsheets and shared mailboxes, that many companies relied on to manage complex services. Enate’s solution offers a single platform that provides a clear view of tasks, enabling organisations to improve efficiency and automate processes.
Large enterprises such as TMF, Ernst & Young, and Acuity have integrated Enate’s software-as-a-service (SaaS) platform to manage their service delivery, often achieving operational savings of up to 20% within the first three months. The platform identifies gaps and opportunities, helping businesses deploy automation effectively across their processes.
Recognising the growing potential of generative AI, Enate has appointed Sam Ward as Head of AI Research and Development to spearhead innovations in this space. From sentiment analysis and email triage to intelligent document processing and data analysis, Enate’s AI tools have been a game-changer for its clients. Recent results show businesses saving up to 30 hours per 1,000 emails processed, which equates to two full-time staff members’ worth of time saved each year.
Built on Microsoft Azure Open AI Service, Enate’s solutions deliver high levels of accuracy, security, and compliance. The company is an official Microsoft ISV Partner and has been recognised as a leader in automation by Zinnov.
Backed by Mercia, Enate’s mission is clear: to free businesses from mundane, repetitive tasks, offering them insights that allow them to focus on customer service excellence and growth.
What was the inspiration behind Enate?
I was inspired to build Enate because, quite frankly, I was fed up with seeing business leaders having to deal with rubbish systems or, even worse, spreadsheets and shared mailboxes to deliver sophisticated services that were just not good enough for the job. We built Enate to cope with how the world really is. Many businesses have traditionally relied on things like IT service management systems to deliver services, but the problem is that while fixing a server in Brazil is the same as fixing a server in Belgium, that’s not the same as running a payroll in those countries. Enate helps standardize to a level that works but also allows you to flex to the variabilities in your business between countries and products, wrapping it all into delivering one superlative service.
Who do you admire?
Having just recently returned from two weeks at Glastonbury Festival – one at the fest, one at the clean-up operation – I have a lot of admiration for Michael and Emily Eavis. What they’ve built and cultivated is truly unique.
The whole concept of Glasto only works because so many people have bought into the idea of it, and are willing to behave somewhat out of character and give their time to do so: An idea I call Glastonomics. Acts like Coldplay perform for a tenth of their usual fee, campers give up creature comforts, doctors and dentists offer free care, and volunteers run the festival.
Post-festival, I joined 2,000 others in litter picking for five days to restore the site to its former glory. I got to spend time with such a diverse range of people from all corners of society, from students to mega high flyers, teenagers to pensioners, and academics. It’s a testament to how contributing to a community brings rich rewards.
Looking back, is there anything you would have done differently?
Yes, I wouldn’t have started a capital-intensive business until I had easier access to capital. The harsh reality is that you have to really struggle for a while. If I could go back in time, I would have started a services business first. Another thing I’d do differently is writing a shareholder agreement – don’t bother with shareholder agreements unless you need them.
What defines your way of doing business?
Working smart, entrusting our talented team to do their best, and ensuring the people around me are happy. I’m not someone chasing a specific endpoint, I define success as something more personal and immediate. If my way of doing business brings happiness to others and they’re engaged, then business is a success. Conversely, if my team and customers aren’t experiencing contentment, it’s a sign that there’s still work to be done.
What advice would you give to someone starting out?
Don’t wait years to get started. Get going and figure out if you’re cut out to run a business. Do you enjoy the feeling you get before an exam? If you can enjoy that, then go for it. You’ve got to be passionate about what you’re doing to be able to face all the challenges that will come along the way.
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Getting to know you: Kit Cox, Founder & CTO, Enate