Half of UK Business Owners Pledge to Hire if Chancellor Boosts Entrepreneur’s Relief
The upcoming Autumn Budget has been a topic of great anticipation and speculation for business owners across the United Kingdom. With the economy still recovering from the effects of the pandemic, many are looking to the Chancellor to provide much-needed support and incentives for businesses to thrive. And according to new research by Helm, Britain’s largest founder network, half of UK business owners have indicated that they would hire more staff if the Chancellor increases Entrepreneur’s Relief in the upcoming budget.
Entrepreneur’s Relief is a tax relief that allows business owners to pay a reduced rate of Capital Gains Tax (CGT) when they sell or dispose of all or part of their business. Currently, the relief allows business owners to pay a reduced rate of 10% on their gains, up to a lifetime limit of £1 million. However, there have been calls for the Chancellor to increase this limit to help businesses recover from the impact of the pandemic.
The research conducted by Helm surveyed over 1,000 business owners across the UK and found that 50% of them would be more likely to hire new staff if the Chancellor increases the Entrepreneur’s Relief limit. This is a significant finding, as hiring new staff can be a costly and risky decision for businesses, especially during uncertain economic times. But with the promise of a higher Entrepreneur’s Relief limit, business owners are more confident in their ability to expand and grow their businesses, which in turn, will create more job opportunities for the UK workforce.
Furthermore, the research also revealed that 62% of business owners believe that increasing Entrepreneur’s Relief will have a positive impact on the economy. This is because it will encourage more people to start their own businesses and invest in existing ones, knowing that they will be able to reap the benefits of a reduced CGT rate when they eventually sell or dispose of their businesses. This, in turn, will lead to increased economic activity and job creation, which is crucial for the UK’s recovery from the pandemic.
The call for an increase in Entrepreneur’s Relief is not just limited to business owners. The Federation of Small Businesses (FSB) has also been advocating for this change, stating that it will provide a much-needed boost for small businesses and the self-employed. They argue that increasing the relief will not only incentivize business owners to hire more staff, but it will also encourage more people to take the leap and become entrepreneurs, which is vital for the UK’s economic growth.
In light of these findings, it is clear that increasing Entrepreneur’s Relief in the upcoming Autumn Budget will have a positive and far-reaching impact on the UK economy. Not only will it encourage businesses to hire more staff, but it will also stimulate economic growth and create a more favorable environment for entrepreneurship. This is a win-win situation for both businesses and the UK as a whole.
However, it is important to note that the decision to increase Entrepreneur’s Relief lies in the hands of the Chancellor. As business owners eagerly await the Autumn Budget, they are hopeful that the Chancellor will take into consideration the positive impact that this change will have on the economy and make the necessary adjustments.
In conclusion, the research conducted by Helm has shed light on the importance of increasing Entrepreneur’s Relief in the upcoming Autumn Budget. With half of UK business owners pledging to hire more staff if the relief is increased, it is evident that this change will have a significant and positive impact on the economy. As we look towards the future, let us hope that the Chancellor will take this into consideration and provide the much-needed support for businesses to thrive and create a brighter future for all.
