Entrepreneurs and tech leaders have urged the Chancellor Philip Hammond to give small business startups a three-year exemption from business rates.
The open letter, endorsed by 20 tech leaders and entrepreneurs including Central Working Founder James Layfield, Tech City UK CEO Gerard Grech, Tech London Advocates Founder Russ Shaw and Techstars CEO Max Kelly, was presented to government ahead of the Spring Budget tomorrow. It came with a warning that the UK will lose its stronghold as the Tech Capital of Europe if these tax reforms are not met.
“Rival technology hubs such as Amsterdam, Berlin and Paris are looking to capitalise on Brexit uncertainty by aggressively marketing to British startups. A significant rise in business rates will only strengthen their hands,” the letter warns.
“We welcome any short term relief you are able to provide to help those who would be worst affected by higher rates. However, we believe that the time has come for a full-scale review of the business rates regime. This should start with an open dialogue with industry to explore how the system can better reflect our changing economy.”
The letter also cautions that the rise in business rates could disproportionately affect London startups and scale-ups, forcing them out of London and preventing the Capital from being “an economic engine of growth for the rest of the country.”
“We now face a real opportunity to go a step further and show that London and the UK are not only open for business, but are actively supporting the next generation of innovative entrepreneurs. I would urge the chancellor to heed this letter, which is supported by some of the Capital’s biggest names in technology,” the letter concludes.
Beavis Morgan – specialist advisers to entrepreneurs
At Beavis Morgan, we specialise in working with startups and entrepreneurial people across a wide range of sectors, providing guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth.
If you would like to find out more about how we can assist you with your entrepreneurial ideas and your startup business, or to discuss how any of the various government tax incentives, such as Research & Development (R&D) tax credits, could benefit your business, contact Steve Govey or your usual Beavis Morgan Partner.
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If you have any concerns or queries relating to the announcements made within the Spring Budget, our tax experts are available to guide you through the tax maze and help you with bespoke solutions to ensure that you and your business are as tax efficient as possible.