Chancellor Rachel Reeves has ruled out imposing an exit tax on business owners moving their firm out of the country in the upcoming budget.
Rumours had been circulating that the exit tax was being considered as a way to boost revenue without touching already ruled out tax increases as well as incentivise entrepreneurs to remain in the country.
Figures from the UK tech industry rallied behind an open letter organised by the Startup Coalition urging the government to reconsider the plan, which claimed the move would “tell founders that their ideas and innovations aren’t welcome, but that they should either get out early or not come at all”.
Startup Coalition executive director Dom Hallas said over LinkedIn that sources within the government have confirmed the policy has been ditched, following initial reporting of the briefing in The Telegraph.
“This is a pro-business government which is building on the progress we’ve already made to strengthen the UK’s position as an attractive investment prospect for the best and the brightest across the world,” a source close to the chancellor told the publication.
“Introducing an exit charge would risk signalling that the UK is less welcoming to entrepreneurs and global talent, and that’s not something the Chancellor wants to do.”
Hallas celebrated the decision and credited pressure from the tech startup community, however, warned it “brings us back to square one”.
The Autumn Budget is scheduled for Wednesday 26 November.
