Growing exodus of business owners from the UK raises competitiveness concerns
Nearly six thousand business owners have left the United Kingdom over the past two years amid rising concerns regarding the nation’s competitiveness, according to recent research, reports BritPanorama.
The analysis revealed that entrepreneurs, primarily from the tech sector, have sought more favourable tax environments abroad, with predominant destinations including the United Arab Emirates, Spain, and the United States. The decline in business ownership has been attributed to an increasingly stringent tax regime and sky-high capital gains tax rates, along with the elimination of the non-domiciled status.
Data from Companies House indicates that 5,940 business owners departed the UK between January 2024 and early 2026, contrasted by only 3,182 who relocated to the UK during the same period. This flight of entrepreneurs highlights a troubling trend as the outflow exceeds the inflow significantly.
The analysis, conducted by Rathbones, suggests that a staggering 8,423 companies have experienced the resignation of a business owner. The software sector was notably affected, accounting for ten percent of these departures—three times more than the property development sector, which ranked second.
Michelle White from Rathbones Group stated, “International mobility among business owners and wealth creators continues to accelerate.” She emphasized an observable migration trend towards regions offering better opportunities and tax incentives, particularly among younger entrepreneurs. White added, “These findings show a clear shift in where UK entrepreneurs choose to base themselves,” underscoring the necessity for the UK to maintain an internationally competitive economy.
As tensions rise over the viability of the UK’s business landscape, there are calls for policymakers to address these issues proactively to retain entrepreneurial talent and foster growth.
The consequences of this exodus could have lasting effects on the UK economy, which risks losing its stature as a global business hub if trends do not reverse.
