The recent decline of the British economy, the UK housing market and general positive sentiment towards life in the UK has led to increased numbers of Britons considering an escape overseas. One generally considers these Brits to be individuals or perhaps families contemplating going in search of some better weather and more positive people…
But in reality, a new survey from entrepreneur think tank Tenon Forum shows that up there with the professional migrants, retirees and would-be expats, greater numbers of small and medium sized enterprises (SMEs) are seriously planning a UK exodus too.
It seems that Brown and Darling’s tax policies are proving unpopular, and that many who run their on business are seriously worried that taxation will rise now that the UK is bailing out every single banking institution that comes knocking with a begging bowl.
None of this bodes well for the future state of the nation. If we lose young professionals we’ll suffer a brain drain and now, if we start losing businesses abroad we’ll lose talent, employment, tax revenue and this will make the UK landscape very bleak indeed.
According to Tenon Forum, over a quarter of all the UK SMEs that they surveyed want to leave the UK and relocate their enterprises abroad because of the state of the tax system in Britain as it stands and as it is likely to develop. The survey focused on a target group of 1,000 companies and one in twenty stated that they had already made firm plans to relocate, with a further 26% stating that they are planning a move within 3 years.
Corporation tax, capital gains tax and the abolition of taper relief were all cited as reasons for leaving Britain – and more shockingly perhaps, 9% of those surveyed advised that they will no longer be able to make it pay if they employ family members and 4% stated that the state of UK’s tax system will likely mean they have to shut up shop and go out of business.
It seems that nothing is working as a wake up call for the current government – so even if the UK loses a quarter of its SMEs abroad, along with increased numbers of citizens of all ages and from all walks of life, nothing in the foreseeable future will change. Is it any wonder that the European Union migrants who flocked here for work are also now boarding planes, trains and automobiles to get the hell out?! It’s been said before, but it needs to be said again – will the last one out please turn off the light!