Swindon & Wiltshire News
Accountancy firm says rich clients are ready to quit UK
Business owners in the South West are preparing for tough decisions – including cutting headcounts and even relocating abroad – if the Chancellor’s upcoming Autumn Budget introduces tax increases or fails to address the costs of employing staff, according to new research commissioned by professional services firm S&W.
The findings are published today (November 5) in The BOSS (Business Owners Sentiment Survey) report, which takes in the views of 500 UK business owners with turnovers of £5 million and above.
The survey reveals that in the South West:
• 40 per cent of respondents surveyed would consider moving their business overseas if taxes are increased in the upcoming Budget
• 42 per cent would consider leaving the UK if a wealth tax is introduced
• 42 per cent would relocate overseas if Capital Gains Tax (CGT) rates rise
• 48 per cent say higher CGT would deter them from starting a new business
• 50 per cent are concerned about the Budget’s impact on their business
Staffing plans in the South West are also under pressure, according to the survey:
• 48 per cent of respondents surveyed anticipate a hiring freeze over the next 12 months
• 50 per cent expect to make redundancies
• 56 per cent of South West businesses are either making or planning staff reductions directly due to the employer NIC increase announced in October 2024 – 24 per cent of those surveyed in the South West have already reduced headcount as a result of the increase, 36 per cent plan further cuts unless relief measures are introduced in the upcoming Budget, and 20 per cent say they will reduce staff even if the Chancellor announces additional support.
However, at the same time many business owners in the South West are pursuing ambitious plans for growth abroad.
For example, 48 per cent surveyed are looking to expand to the US within five years and 54 per cent are looking to expand within Europe in the same period.
Helen Bassett, regional managing partner at S&W said: “South West business owners have voiced a clear message for the Chancellor ahead of the Budget.
“Faced with rising employment costs and the threat of new taxes, many are preparing to cut jobs or shift operations overseas.
“The region’s entrepreneurial spirit remains strong, but without urgent action, ambition will be stifled and talent lost.”
