Carolyn Dawson’s Post

With new Capital Gains Tax, UK Government wants to sabotage our innovation economy 🙄. The Labour Party proposes to raise CGT from 20% to somewhere around 39%. This doesn't exactly scream "We love innovation!" does it? Yes, we get it. Running a country isn't cheap. But here's the thing: 500 of us entrepreneurs (including some unicorn founders) just wrote to the Government saying this could seriously mess with the UK's tech scene. We're not just being dramatic – this stuff matters. We're out here taking massive risks, pulling all-nighters, forgoing idea of owning a house, and basically putting our lives on hold to build something meaningful (and remember, about 90% of startups fail and we get nada, zero, null...) If the new proposal goes through, you're better off in a full-time role that pays £50K a year, rather than paying a 39% tax rate on £250K from selling your startup. It's a no-brainer if it gets to that. This will also push investors away from the UK, which is a key building block that drives innovation. Is a potential, unintended positive consequence = more CGT > more CGT to write off > more SEIS/EIS investments? I'm an optimist, so I can only hope so. I already see many of my fellow entrepreneurs considering move elsewhere. Plus, there is a sudden rush among founders to exit before the budget proposal kicks in. I'm worried about attracting top talent with stock options. How can we compete with big corporates if the potential upside for employees is slashed? We're really screwing ourselves over here in the UK. The gov needs to understand: kill the incentives, and you kill innovation. Just my two cents (or should I say, what's left of my two cents after taxes 😅). #UKTech #CapitalGainsTax #CGT #Innovation #Entrepreneurship

On Wednesday, Chancellor Rt Hon Rachel Reeves delivered the #AutumnBudget which resulted in mixed reactions 👀 Some of the #tech and #investment industry experts who shared their thoughts with Gina Marrs at TechRound were: 💭 Cordelia Meacher, our Managing Director and Founder, believes the Budget shows a "complete lack of understanding" about how much business owners and #entrepreneurs support the British #economy and drive #growth. 💭 Royden Greaves, CEO and Founder of Jarvis, thinks #innovation must remain at the forefront of the #Government's agenda and scrapping Business Asset Disposal Relief will be "damaging" to the UK's #startup ecosystem. 💭 Timothy Mills, Managing Partner at ACF Investors, maintains that the UK is "well-placed to drive world-leading innovation", but the Government must ensure entrepreneurs are incentivised to stay and build here. Check out the full piece: https://bit.ly/3NOgdql #Budget2024 #Funding #Insight #Opinion #Taxes #Technology

There’s a tense atmosphere as we wait for the UK budget announcement this Wednesday. With rumors of higher CGT, increased employer NI, and even the potential end of Entrepreneurs' Relief, I have to say—I’m not optimistic about the future of UK innovation. At Roome, we’ve spent four years finding true innovation, achieving PMF, and paving our route to profitability. But it’s tough not to wonder: will the years of grit, sacrifice, and hard work still be worth it for founders starting out today? Losing incentives risks discouraging the very R&D, job creation, and economic contributions the country needs. And if the UK becomes less attractive to HNWIs and Angel investors, start-up funding will only get tougher. To me, this feels like punishing risk-taking—just when we need it most. Where’s the incentive to keep pushing forward? I already know several successful entrepreneurs considering moving their businesses abroad, and investors who’ve sold shares ahead of the budget announcement. It’s concerning to see this shift even before any changes are official. I guess we’ll have to wait until Wednesday. Please share any thoughts below!

https://lnkd.in/eEk8nMu4 In an era where startups and businesses are booming globally, the UK must stay competitive and attractive for investment. However, recent statements and actions from Labour’s leadership seem to cast doubt on the nation's openness to new businesses. These sentiments risk alienating innovators and investors who look for supportive, growth-oriented environments. Sir Keir, let’s make sure the UK doesn't become a place where businesses feel unwelcome. With the right policies, we can create a thriving economy that supports job creation, innovation, and sustainable growth. Let’s make it clear that the UK is open for business, not just for big players but for startups and SMEs that fuel economic diversity and resilience. Our economy depends on it. Let's work together to make the UK a beacon for global investment and a nurturing ground for ambitious entrepreneurs. #UKBusiness #SupportStartups #InnovationEconomy #InvestmentInTheUK

🚨 **The UK is Forcing Entrepreneurs to Leave** 🚨 As the government plans to hike capital gains tax from 20% to a staggering 39%, it's time to take a hard look at the implications for innovation and job creation in the UK. Here are some eye-opening facts: 1. **Tax Burden**: With this increase, founders may find themselves better off in stable jobs. For instance, earning £50K in a full-time role means a significantly lower tax hit than paying a 45% marginal rate on profits of £250K from selling a startup. 2. **Investment Deterrent**: A higher capital gains tax will likely deter investors from putting their money into UK startups. This is detrimental, as investment is a crucial driver of innovation and economic growth. 3. **Innovation Decline**: The entrepreneurial ecosystem thrives on risk-taking. If the potential rewards diminish, fewer individuals will choose the entrepreneurial path, leading to a stagnation in innovation. However, could there be a silver lining? 🤔 Is it possible that higher CGT could lead to more opportunities for SEIS/EIS investments? As a positive thinker, I hope this might stimulate more investment in early-stage companies, counterbalancing the negative impacts. Nonetheless, the reality is clear: this increase in capital gains tax will likely push both investors and founders to seek opportunities abroad. We need to reassess our priorities in the UK. The current trajectory seems to be self-sabotage rather than fostering a thriving entrepreneurial landscape. What are your thoughts? How can we turn this around? Let’s discuss! 💬 #Entrepreneurship #UKBusiness #CapitalGainsTax #Innovation #StartupEcosystem

💼 It’s Budget Day! In the U.K. What’s in Store for Startups and Investors? 🚀 Today, all eyes are on the UK budget announcement and its potential impact on the investment and startup landscape. Here’s what to watchi closely: 🔸 Tax Changes Will we see adjustments to Capital Gains, (#cgt) Inheritance, and National Insurance? Even minor changes here could shape the startup ecosystem, influencing investor activity and risk-appetites. 🔸 Support for Growth-Stage Funding The UK’s funding gap is a hurdle. More support for Series A and beyond, particularly through pension fund investments, could be the boost UK startups need to scale domestically. 🔸 Tax Relief Investment Schemes (EIS & SEIS) Likely to remain unchanged, these schemes are critical for early-stage funding. Any updates on these would be a surprise, but indirect tax changes such as adjustments to inheritance tax could still impact their effectiveness. 🔸 High-Net-Worth Investors With potential CGT and inheritance tax adjustments, could this deter high-net-worth individuals who fuel our startup sector from investing in the U.K.? Ensuring these investors stay engaged is essential for a thriving start up ecosystem. The big question today: Will the budget prioritize innovation, growth, and support and fuel the UK’s entrepreneurial spirit? Let’s see what’s in store later today! 👊🏼 #BudgetDay #UKBudget #Startups #Investment #Innovation #Growth #newable

As the UK Government sets out its stall for the economy at The Labour Party, it is worth reflecting on what was actually promised in the manifesto and how much of this will survive the scrutiny of actually being in power. When I reviewed the proposed policies in the article below, perhaps the most important contribution was from a paper entitled “Start-Up, Scale-Up: Making Britain the best place to start and grow a business” This looked at a number of key areas including business incentives, access to capital, encouraging more spin outs from universities, and how to make the most of entrepreneurial potential across the whole country from a more diverse range of founders. Certainly, if wealth creation and growth are the focus of this new government, then entrepreneurs and the new and growing firms they own and manage needs to be at the centre of everything they do. https://lnkd.in/euzY5H3t

💷Up to £178bn to get Britain’s economy growing! 📈   The Government has rightly made economic growth a key priority, with private capital as an indispensable partner. Our new Investment Commission with Public First has detailed plans on how more of the UK #privateequity and #venturecapital industry’s £178bn of committed, but un invested UK managed funds, could stay here in the UK.   🤝As a partner for growth, we know that #privateequity and #venturecapital has a big role to play in helping to direct investment into the UK.   The Commission surveyed a range of investment professionals, academics, think tanks and business groups to better understand what policies are currently holding back investment, and restricting the growth of exciting and innovative British businesses. These results then informed the baseline of our policy proposals to the Government. Rt Hon Rachel Reeves Jonathan Reynolds MP Peter Kyle Tulip Siddiq James Murray   Key findings are Reform the planning system to enable scale. A third (33%) of investment professionals surveyed say planning reform would make it easier for them to invest in UK businesses. Enable innovation through a program of agile regulations. Nine in 10 (91%) investors surveyed say a faster and more agile regulatory system would make it easier for them to invest in UK businesses. Reduce policy uncertainty by introducing an ‘Industrial Strategy’ and making fewer changes to fiscal policy. Over four in 10 (42%) investment professionals surveyed say they have decided not to invest in a UK business because of regulatory uncertainty. Upskill the workforce and attract global talent.Eight in ten (79%) investors surveyed say UK businesses they invest in have experienced problems as a result of skills shortages. Make regulation less complex to compete with global competitors and invest in R&D. Over two thirds of (70%) of investors surveyed say UK businesses they invest in have experienced problems because of regulatory uncertainty. Facilitate growth through efficient infrastructure. Over four in 10 (42%) of investors say they have decided not to invest in a UK business because of a lack of public infrastructure such as transport or grid connections. I want to say a big thank you to everyone who helped contribute this report including our expert panel members and Public First for bringing this all together. 🙌 in particular Tom Hamilton Rachel Wolf   You can read the full Investment Commission report here: https://lnkd.in/eZrrJv57

The Liberal government's recent budget announcement is disappointing news for entrepreneurs and investors. The budget will reduce investment, stifle innovation, and discourage risk-taking. Instead of creating programs to stimulate growth, the budget is designed to pay for additional bureaucracy and to rectify numerous mistakes. In contrast, the UK government has created programs that stimulate the startup ecosystem, including the Enterprise Investment Scheme (EIS). This government initiative encourages investment in small businesses. Investors who back qualifying EIS businesses can claim a 30% tax relief on their investment, allowing startups to raise up to £12 million in capital. This injection of funds can fuel expansion plans, product development, and market expansion, while also supporting innovation, job creation, and economic progress. It's important to support growth and innovation in startups, and investors are rewarded for doing so through tax relief. Let's take a cue from the UK government and create programs that encourage investment, foster growth, and support innovative small businesses. Despite the government's shortcomings, we live in one of the best, safest, and most beautiful countries on the planet, and our people are inclusive, good, and smart. Let's work towards a change that benefits us all.

In Wednesday's #SpringBudget, Chancellor Jeremy Hunt mentioned the UK's unwavering support for #Ukraine. I spoke to Richard Parris about how the additional £2.5 billion commitment for this year and next will be key to turning the tide of the war. It's an unfortunate truth that war breeds #innovation and drives #technology breakthroughs, but #collaboration between the UK and Ukraine will help Ukraine both now and in the future when it's time to #rebuild. This is why UK-Ukraine TechExchange focuses on #DefenceTech and #AgriTech - two extremely important sectors for a nation at war. Find out what else I, and other #entrepreneurs and #investors, had to say via Startups.co.uk https://lnkd.in/epaSkpzP