This afternoon, Chancellor of the Exchequer Rachel Reeves gave the 2025 Autumn Budget. Read below for our team’s snap reaction to some of the main points concerning economic growth, innovation and entrepreneurship.
We’ll be digging into things in more depth later in the week — so stay tuned by subscribing to our Friday newsletter, Perennial Gale, if you haven’t already.
On the Autumn Budget in general
Philip Salter, Founder of The Entrepreneurs Network said:
“Despite a challenging economic environment of sluggish growth, stagnant productivity and rising taxes, and a failure to deliver the fundamental tax reform the system desperately needs, this Budget includes targeted measures to support the UK’s entrepreneurial ecosystem that ambitious founders will welcome.
“Unlike the Chancellor’s first Budget, there were no significant unwelcome surprises, with a number of measures directly addressing founders’ priorities. The doubling of Enterprise Management Incentive allowances and the expansion of the Enterprise Investment Scheme stand out as a clear response from the Government to calls from entrepreneurs.
“Entrepreneurs will also welcome the Call for Evidence on supporting companies to start, scale and stay in the UK. But with our latest survey showing that more than a quarter of ambitious entrepreneurs are considering leaving the UK in the next 12 months, this focus couldn’t come soon enough.”
On the new UK Listing Relief
Eamonn Ives, Research Director at The Entrepreneurs Network said:
“Britain’s 0.5% Stamp Duty Reserve Tax that is paid when anyone buys shares in a UK-listed company is an international outlier and a relic of a bygone age. It depresses share prices, increases the cost of capital and adds friction to our beleaguered markets.
“A three-year SDRT holiday is therefore welcome, but given that most firms and investors operate on far longer time horizons than that, its overall effect will be muted. If the Government accepts the logic that SDRT is not fit for purpose, it should chart a course to abolish it entirely.”
On changes to EMI
Mann Virdee, Senior Researcher at The Entrepreneurs Network said:
“It’s encouraging to see that the Enterprise Management Incentive (EMI) is being expanded. Currently, a company can offer EMIs if it has both assets of £30 million or less, and fewer than 250 full-time employees. The Chancellor announced that the gross asset test is being quadrupled to £120 million, and the employee limit is being doubled to 500 employees. Doing so allows startups to attract and retain talent from larger companies when they don’t have the resources to compete on salaries.”
On public sector procurement driving innovation
Philip Salter, Founder of The Entrepreneurs Network said:
“Public sector procurement accounts for 15% of GDP – a massive economic lever that should be driving innovation. But it isn’t.
“The recent Procurement Act didn’t go nearly far enough to unlock this potential. That’s why it’s encouraging to see the Government revisit procurement reform in the Budget.
“While the devil will be in the detail and implementation, three initiatives show promise: expanding Advance Market Commitments to drive innovation, creating an Innovation Marketplace to fast-track innovative solutions, and appointing Procurement Innovation Champions across all departments.
“These measures suggest the government is starting to think creatively about how to harness procurement’s power.”
On the Nuclear Regulatory Review 2025
Eamonn Ives, Research Director at The Entrepreneurs Network said:
“Access to cheap, reliable energy is critical to future economic growth. Nuclear power should sit at the heart of Britain’s decarbonisation mission, but presently we have some of the highest construction costs in the world.
“Reforms set out this week by John Fingleton in the Nuclear Regulatory Review 2025 could slash costs and expedite gigawatts of additional clean power to the grid. If the Government is as serious about delivering growth and halting climate change as it says it is, it must accept the Review’s recommendations in full.”
On attracting and retaining talent
Mann Virdee, Senior Researcher at The Entrepreneurs Network said:
“As we recently revealed, 54% of the UK’s fastest-growing businesses have at least one founder – and often multiple – who was born overseas. High visa costs, together with slow processing times, are making Britain uncompetitive in the race for the world’s best and brightest researchers and entrepreneurs. As such, we are pleased to see the Government acknowledge the value of high-skilled immigration to the economy.
“The Budget reiterated that the Home Office will introduce reforms to the High Potential Individual, Innovator Founder, and Global Talent visas. We hope that these changes streamline access to top-tier talent in support of the UK’s modern Industrial Strategy.”