Minus tax, the UK still has the fundamentals to nurture entrepreneurs, but it’s presenting itself as a wimpish place to work, writes Sean Bannister for City A.M.

For years the issue of taxpayer flight has been framed as an international wealth issue, but today a growing number of entrepreneurs and investors, most in their prime wealth creation years, are leaving the UK to build businesses elsewhere. Increasingly, it is founders and investors who are scaling businesses that are actively considering a UK exit. It is domestic wealth that is at jeopardy. When people at that stage begin to look elsewhere, it points to something more structural than a narrow financial calculation and carries real implications for entrepreneurship and innovation.

Tax still features in decision-making, but it rarely stands alone as the driving force. What comes through more clearly is a sense that building in the UK has become harder to navigate, with less predictability and a tone that feels more cautious than ambitious. Remote working has made that shift more tangible, reducing the friction associated with relocating and making it easier to operate across jurisdictions. Once location becomes flexible, founders begin to weigh where momentum feels strongest rather than where they are tied.

Conversations with those exploring their options suggest this is not a reaction to a single policy change, but a gradual accumulation of signals shaping how the UK is perceived. Confidence and perception play a significant role, particularly for founders making long-term bets about where to anchor their businesses. The technical strengths of a market matter, but so does the story it tells about itself, and this is where the UK is losing ground.

To read the full article, visit the City A.M website here.

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