Entrepreneurs in the UK could look to go where the grass is greener in a huge blow to Rachel Reeves, experts say. After the Chancellor’s announcements yesterday, experts have shared what the new policies could mean for business owners.

With the national minimum wage due to increase, businesses will face extra pressure to find the money to pay employees more.

Matthew Percival, CBI director of work and skills, said “hard-pressed firms” were already “diverting investment away from innovation, training and job creation – the very things we need to boost the productivity growth that underpins sustainable wage increases,” reports The Independent.

Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), warned labour costs are among businesses’ three biggest barriers to growth.

She said: “With National Insurance contributions rising, employment costs climbing and hiring becoming riskier, small employers are thinking twice about taking people on – and it’s young people who’ll miss out. Give businesses the capacity to hire and they will – it’s that simple.”

Now Philip Salter, Founder of The Entrepreneurs Network, has stated that in the latest survey, more than a quarter of ambitious entrepreneurs reported considering leaving the UK within the next 12 months.

Philip says the focus on the landscape in the UK for business owners can’t come soon enough. But, despite the challenges businesses face, Phillip says there are some positives for businesses.

He says: “Despite a challenging economic environment of sluggish growth, stagnant productivity and rising taxes, and a failure to deliver the fundamental tax reform the system desperately needs, this Budget includes targeted measures to support the UK’s entrepreneurial ecosystem that ambitious founders will welcome.

“Unlike the Chancellor’s first Budget, there were no significant unwelcome surprises, with a number of measures directly addressing founders’ priorities.”

He adds: “The doubling of Enterprise Management Incentive allowances and the expansion of the Enterprise Investment Scheme stand out as a clear response from the Government to calls from entrepreneurs.

“Entrepreneurs will also welcome the Call for Evidence on supporting companies to start, scale and stay in the UK.”

Mann Virdee, Senior Researcher at The Entrepreneurs Network says that the Budget did make some emphasis on factors which will help to improve the situation for entrepreneurs.

Mann recognises the focus the Home Office will introduce for reforms to the High Potential Individual, Innovator Founder, and Global Talent visas.

He says: “We hope that these changes streamline access to top-tier talent in support of the UK’s modern Industrial Strategy.”

Reeves announced that permanently lower business rates will be brought in for thousands of retail, leisure and hospitality businesses.

The chancellor also says that SMEs will have apprenticeships for eligible under 25s paid for.

The Budget revealed that income tax thresholds will be frozen for employed and self-employed workers at their current level for another three years from 2028-2031.

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