UK Business
Budget Backlash: Chancellor Defends Tax-Raising Budget as Half of CBI Members Consider Job Cuts, Threatening Labour’s Growth Plans
As two-thirds of businesses rethink hiring plans, new research from Cornerstone Tax reveals 44% of the public believe Labour is not business-friendly
One-in-five Brits cite proposed tax increases as key factor for moving abroad
David Hannah, Group Chairman of Cornerstone Tax, discusses growing concerns among Brits one month after Labour’s inaugural Autumn Budget
Yesterday, the Confederation of British Industry (CBI) revealed data that highlights that half of the lobbying group’s members have claimed that they would reduce headcount following the tax rises announced in last month’s Autumn Budget. Additionally, almost two-thirds are rethinking plans to hire new staff. Chief Executive of the CBI, Rain Newton-Smith, has asserted that the government has made it harder for firms to “take a chance” on hiring new people. Exclusive data from Cornerstone Tax, the UK’s leading property tax advisory, reveals that this sentiment is not only held amongst business leaders, but also a significant portion of the British public – with 44% of the UK agreeing that the new Labour government is not business friendly.
According to Cornerstone’s national research, 21% of the nation cite proposed tax increases from the Labour government as a key factor for moving abroad. A further 16% reported that the Autumn Budget served as the decisive jumping-off point for their planned departure. The report from Cornerstone suggests that if Brits act on their intentions, the UK economy could face significant losses amounting to billions of pounds in business and property revenue, as well as investment-weighted assets.
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Moreover, as 21% of founders contemplate moving their enterprise abroad. Cornerstone are able to provide a unique index of where potential expats are considering their future move. The most popular destinations for relocation are as follows:
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Spain (14%)
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Australia (12%)
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USA (9%)
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Canada (8%)
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UAE (7%)
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Portugal (5%)
David Hannah, Group Chair of Cornerstone Tax, emphasises how new economic policy could shift where Brits intend to house their families, money, businesses and futures:
"Our data highlights a clear issue that there are significant concerns amongst Brits regarding the new Labour government and last month’s Autumn Budget. With proposed increases to Capital Gains Tax and Inheritance Tax, it's no surprise that 16% of the population agree that this budget is their deciding factor in their decision to leave the UK. The thought of rising taxes amidst a cost-of-living crisis is pushing people to reconsider their futures.
“What we're now seeing is a significant shift in where Brits intend to house their families, their money, and their businesses. Our research shows that 32% of individuals are contemplating a move abroad due to these tax changes, with 23% considering relocating their families and 21% thinking about taking their businesses overseas. These are not just fleeting thoughts—they are serious intentions for many Brits as they seek more favourable conditions elsewhere.
“Moreover, our research highlights that 29% of Brits believe that renting property abroad offers greater advantages than maintaining a mortgage in the UK, reflecting the profound impact of the ongoing housing crisis. This situation has left many feeling trapped in a challenging market, prompting them to seek better alternatives overseas. The data support this revealing that Spain, Australia and the USA are among the top destinations for the 24% of Brits considering relocating their tax residence. This trend underscores how the government's policies are not only exacerbating the housing crisis but are also driving a significant migration of wealth and talent, reshaping the future of our nation."
David Hannah, Group Chair
