Nearly 6,000 high-growth business owners have left the UK in the past two years, driven by tax regime changes and economic competitiveness concerns, according to analysis of Companies House filings by Rathbones. The technology sector saw the highest number of departures, with the UAE, Spain, and the US being the most popular destinations. Significant tax reforms, including a new inheritance tax regime and higher capital gains tax, are said to have contributed to the decision to relocate. The report shows that 3,182 business owners came to the UK in the last two years, resulting in a net exodus of 2,758. Separatley, the Times reports that from April, Business Asset Disposal Relief – formerly Entrepreneurs’ Relief – will be cut, with the tax rate rising to 18% and applying only to the first £1m of gains, reducing its incentive for larger business exits. Combined with inheritance tax reforms, higher corporation tax, and increased dividend taxes, advisers warn entrepreneurs face a “triple whammy,” prompting some to consider leaving the UK before selling. While the government has expanded other investment incentives, critics say the expected revenue gain is small compared with the long-term economic benefits of supporting entrepreneurial growth.

A new report by Barclays suggests that the UK has a “two-speed” economy, with smaller firms feeling significantly more pessimistic than larger ones. Only 12% of businesses with fewer than ten staff believe current conditions support long-term growth, compared to two-thirds of larger employers. Small firms are increasingly relying on short-term borrowing, with overdraft usage up 2.5% year-on-year. The report, which included insight from 1,000 business leaders, saw them all report “intense” cost pressures. Abdul Qureshi, head of Barclays’ business banking arm, said: “Smaller businesses have been operating cautiously, and the pressures they face are clear,” adding: “Even so, many still see the UK as a place where they can innovate and grow.”

US President Donald Trump has announced a new 15% global tariff following a Supreme Court ruling that invalidated his previous import taxes. The tariffs will take effect on February 24 but can only stay in place for 150 days without approval from Congress. Mr Trump described the court’s decision as “ridiculous, poorly written, and extraordinarily anti-American,” saying that it represents a setback for US manufacturing. Allie Renison, a former UK government trade adviser, said: “While it may seem like a good day for free trade, I think trade actually just got a lot messier,” adding that businesses are now facing “much more of a patchwork approach” to tariffs under the Trump administration. William Bain, the head of trade policy at the British Chamber of Commerce, said 40,000 UK companies exporting goods would be “dismayed,” adding: “Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve that.”

The UK Government recorded a historic surplus of £30.4bn in January, according to the Office for National Statistics (ONS). This figure is nearly double last year’s surplus of £15.4bn and the highest since records began in 1993. Analysts had predicted a surplus of £23.8bn. The increase was driven by higher capital gains tax payments and self-assessed taxes. Borrowing for the first ten months of the fiscal year was £112.1bn, down 11.5% from the previous year. James Murray, Chief Secretary to the Treasury, stated: “We will more than halve borrowing by 2030-31.” However, Danni Hewson, head of financial analysis at AJ Bell, says: “One swallow does not make a spring,” adding: “Fundamentally the UK economy remains weak and vulnerable and the high levels of unemployment, particularly amongst the young, hint at a difficult future ahead.”

Low-productivity UK firms have nearly doubled since 1997, outpacing overall business growth, while high-productivity firms rose more slowly and bottom-tier output per worker remains below 1997 levels, widening performance gaps.

Job vacancies in Britain have fallen to their lowest level in five years, with Adzuna reporting just 694,940 roles advertised in January, down 16% year on year. Graduate vacancies dropped below 10,000 for the first time since 2016, while youth unemployment rose to 16.1%, the highest in over a decade. Rising national insurance costs, minimum wage increases, and the growing use of AI to automate tasks have prompted many employers to freeze hiring, particularly at entry-level positions. Competition for jobs has intensified, with 2.4 jobseekers per vacancy, reflecting a market close to pandemic-era lows. Some signs of stabilisation emerged, however, with the Recruitment & Employment Confederation reporting a 3% rise in active postings in January, suggesting the decline in vacancies may be easing.

The UK’s private sector has seen job losses for the seventeenth month in February, primarily driven by a significant decline in the services sector. The latest flash Purchasing Managers Index (PMI) from S&P Global indicated a “solid pace” of job shedding, although it was “fractionally slower” than January. Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that despite increased demand, companies are focused on productivity, leading to ongoing job losses. S&P also said “another steep increase in business expenses” meant the rate of price inflation remained above average.

Sir Tim Martin, founder of JD Wetherspoon, has warned that rapid increases to the minimum wage are reducing job opportunities and pay growth for experienced staff. He claims it has shifted from a protective safety net to a political contest over who can offer the highest rise. The minimum wage was set at £7.20 just a decade ago, but has most recently been increased to £12.71 an hour by Chancellor Rachel Reeves. Other business leaders, including Superdry founder Julian Dunkerton and Bella Italia boss Alan Morgan, have also expressed concerns, warning that higher rates for younger workers could limit entry-level jobs.

James Reed, chairman and chief executive of recruitment company Reed, warns that recent tax reforms threaten the future of family businesses in the UK. He says changes to business property relief and agricultural property relief will impose new burdens, warning: “The inevitable consequences of these reforms are twofold: first, a chilling effect on investment and recruitment; second, the forced sale or break-up of companies.” He calls for a pause and consultation on these reforms to support family businesses, noting that such firms represent 90% of all businesses and employ over half of the workforce.

The Treasury reported a record £109.7bn in tax receipts for January, marking the first time it surpassed £100bn in a month. This figure represents a £13.3bn increase from the previous year, driven by a £12.3bn rise in income tax to £70.2bn due to frozen thresholds. National insurance contributions also rose by £2.9bn to £17.7bn. The Government collected a record £7.1bn from inheritance tax, up £100m from the previous year, attributed to frozen thresholds and rising asset prices. Isaac Stell, investment manager at Wealth Club, said new rules bringing pensions into the scope of IHT and frozen allowances mean more families are set to be dragged into the tax net. He added: “At the same time, HMRC’s tougher enforcement is adding further pressure at what is already a difficult time for bereaved families.”

Debeo, the UK’s first purpose-built online alternative finance platform, has launched in Leeds to address the £90bn lending gap affecting SMEs. The platform provides real-time data and insights, helping businesses understand their debt and navigate commercial borrowing. Founder Alex Beardsley commented: “Our platform uniquely uses the latest data to empower better business debt management.” Debeo aims to streamline the application process, reduce risks, and improve access to funding for SMEs, ultimately supporting the wider UK economy. The platform also aids accountants and brokers by offering visibility into clients’ commercial debt statuses.

The Financial Reporting Council (FRC) is considering relaxing auditing regulations to allow Chinese companies listing on the London Stock Exchange to use Chinese accounting standards instead of the UK’s stricter regime as part of efforts to boost the City’s competitiveness. However, Fraser Howie, a former investment banker, warns that this could expose UK investors to significant risks, saying that the move is “primed for disaster” and “makes no sense at all.” He added that Chinese firms “have a long history of listing and then committing fraud and telling outright lies.”

Paul Morland in the Telegraph argues that family-friendly housing is crucial to addressing Britain’s population decline, calling for relaxed planning rules, more affordable homes, and prioritising public housing for British families. He says that without access to suitable homes, young people struggle to leave their parents’ homes during their most fertile years, limiting their ability to start families.