The heads of one in eight UK small and medium-sized enterprises (SMEs) are actively planning to relocate themselves, their businesses, or both due to the current tax burden.
This equates to 12% or around 680,000 businesses, according to a new poll by Rathbones.
Among those planning to relocate, a third (33%) said they will also move their business abroad, with another third looking to move as individuals, while the rest plan only to move their businesses.
Ireland was cited as the top destination by 26%, while 21% chose Dubai and 18% the US.
A further 26% business leaders said that while they are not planning on moving overseas, they are concerned about the tax environment, with fears exacerbated by the impending Budget.
Ade Babatunde, senior financial planning director at Rathbones, said: “SMEs are the backbone of the UK economy, and the fact that many are actively planning to leave the country – whether personally, by relocating their businesses abroad, or both – due to the current tax burden is deeply concerning for the government’s ambition to get Britain growing.
“Their departure would mean the loss of valuable tax revenue and much-needed employment opportunities.”
Meanwhile, 63% of respondents said the government is not doing enough to incentivise business creation and growth while 42% believe government policy is unsupportive of business. Tax changes have had the biggest impact on business according to 43% of owners.
Babatunde added: “SME owners are sending a clear message: they feel let down by current government policy.
“With nearly two-thirds saying not enough is being done to support business creation and growth, and many citing tax changes and rising employment costs as major challenges, it’s no surprise that confidence is waning.
“What SMEs want are incentives to take risks, and recognition for success. These are not just asks – they’re essential ingredients for a thriving economy.”
