Chancellor Rachel Reeves faces warning from UK businesses
Chancellor Rachel Reeves has been informed that one in five of the UK’s fastest growing companies could leave the country within three years, according to a new report. This alert comes just two weeks before the Budget amid concerns from firms that without government intervention, they will relocate abroad, reports BritPanorama.
With a looming financial gap of approximately £30 billion by November 26, Ms. Reeves faces mounting pressure to create a more conducive business environment. The Growth Signals report from Virgin Media O2 surveyed over 2,000 firms, highlighting infrastructure issues, bureaucratic red tape, and skills shortages as major factors prompting these companies to consider exiting the UK.
Entrepreneurs are urging ministers to foster an “environment to match our ambition,” as they express intentions to invest and create jobs. Despite nearly three-quarters of start-ups signalling plans to increase investments, 85 per cent expressing a desire to remain in the UK, many cite regulatory burdens and political uncertainty as significant barriers to growth.
The report further reveals a concerning trend: roughly £100 billion exited London’s capital markets last year alone. This reinforces findings that one in five of the UK’s fastest growing companies demand that the government implement a set of measures by 2028 or risk their departure.
Despite 64 per cent of start-ups planning to boost investment, key challenges remain. A reported 58 per cent of firms highlighted regulatory burdens as a constraint, while 54 per cent cited political uncertainty, and 52 per cent called for improved access to funding.
Lutz Schüler, CEO of Virgin Media O2, stated, “Bold and innovative businesses are created here in Britain because it cultivates home-grown talent with the ambition to match. However, too many of the fastest growing companies can’t see a route to scale in the UK and are now looking to prosper abroad.” He underlined the urgency for agile regulation, stable long-term policies, and a strong talent pipeline to revitalise the UK’s economic prospects.
Overall, 68 per cent of those surveyed indicated they believe the US offers a more advantageous environment for business growth. The findings underscore the need for immediate and effective measures to ensure the UK remains a competitive location for burgeoning businesses.
The challenges facing the UK’s business landscape reflect broader concerns regarding the country’s economic resilience and adaptability. With the ongoing global shifts and technological advancements, the necessity for strategic frameworks that support innovation and growth is more critical than ever.
