The UK government is facing criticism from small and medium-sized enterprise (SME) owners and bosses, with nearly two out of three (63%) stating that the government is not doing enough to encourage business growth. This finding comes from a recent poll conducted by Rathbones, one of the UK’s leading wealth and asset management groups.
The poll, which surveyed 1,024 SME founders, owners, and senior executives, also revealed that more than two out of five (42%) believe that current government policy is unsupportive of businesses. This sentiment is further echoed by the fact that one in eight (12%) SME leaders, equivalent to around 680,000 businesses out of the UK’s 5.67 million, are actively planning to relocate themselves, their businesses, or both due to the current tax burden.
Of those planning to relocate, a third (33%) stated that they will move their business abroad, while another third will move as individuals, and the rest plan to only move their businesses. Ireland was the top destination for these potential relocations, with 26% choosing it as their preferred location, followed by Dubai (21%) and the US (18%).
The dissatisfaction with tax levels is not limited to those planning to leave the UK, as an additional 26% of business leaders expressed concern about the current tax environment. This news comes just weeks before a crucial Budget, where the Chancellor is rumored to be considering raising the burden of business.
Ade Babatunde, Senior Financial Planning Director at Rathbones, expresses concern over the potential loss of valuable tax revenue and employment opportunities if these SMEs do decide to relocate. “SMEs are the backbone of the UK economy, and the fact that many are actively planning to leave the country due to the current tax burden is deeply concerning for the government’s ambition to get Britain growing.”
The poll also revealed other notable findings, such as a general dissatisfaction with current government policy, with 63% stating that not enough is being done to incentivize business creation and growth. Additionally, 42% believe that current government policy is unsupportive of business. When asked about the impact of recent policy changes, 36% stated that increases to Employers’ National Insurance and the National Living Wage have moderately or significantly affected their businesses. 43% cited tax changes as having the biggest impact, while 13% pointed to employment law changes.
In terms of policy priorities for SMEs, 49% stated that they want tax breaks to encourage business growth and staff hiring, 25% support incentives for business owners to take risks, and 21% favor rewards for business success.
Babatunde notes, “SME owners are sending a clear message: they feel let down by current government policy. With nearly two-thirds saying not enough is being done to support business creation and growth, and many citing tax changes and rising employment costs as major challenges, it’s no surprise that confidence is waning.” He adds that “What SMEs want are incentives to take risks, and recognition for success. These are not just asks – they’re essential ingredients for a thriving economy.”
Rathbones has extensive experience working with entrepreneurs and family-run businesses, with offices across the UK. For more information, visit their website at https://www.rathbones.com/wealth-management-entrepreneurs-business-owners.
The poll was conducted by independent research agency Viewsbank between October 24th and 27th, 2025. It surveyed 1,024 SME founders, owners, and senior executives. The UK government’s Business Population Estimates for 2025 report states that there are 5.67 million businesses in the UK, indicating that around 680,000 businesses are planning to relocate.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.