British entrepreneur John Caudwell has criticised the Labour government, stating that their pro-business promises made during the 2024 election have not translated into action. Caudwell, founder of Phones 4u, said he backed Labour as the only viable option at the time, but now believes they have given entrepreneurs more reasons to consider investing elsewhere.
Caudwell highlights several tax increases, including Business Asset Disposal Relief, which has risen from 10 per cent until April 2025, to 14 per cent after that, and 18 per cent since April. Employers’ National Insurance and Capital Gains Tax have also increased, while reliefs for business and agricultural property have been narrowed.
These changes are occurring in an economy facing challenges, with inflation at 2.9 per cent, unemployment at 4.9 per cent and rising, and over 53,000 British companies in critical financial distress in the second quarter of this year. Caudwell supports the 'Stop the Creep' campaign, which calls for the Chancellor to reverse tax rises affecting business builders.
Analysis of Companies House filings by Rathbones indicates that almost 6,000 business owners, primarily technology founders, left the UK in the two years leading up to January 2026. Caudwell argues that other countries, including the US, UAE, Spain, Singapore, Monaco, and Italy, offer more attractive terms for entrepreneurs.
Caudwell suggests that the government should reverse the increase in employers’ National Insurance, restore entrepreneurial reliefs, and provide long-term clarity on business taxation. He also proposes saving around £12bn through public spending efficiency and calls for a serious inward investment operation to attract global companies to Britain. The upcoming Budget on 28 October is seen as a crucial moment for the government to address these concerns.