When will this government realise that constant tax tinkering and a lack of sentiment or focus towards business owners is self-defeating? Asks Vipul Sheth.
It felt right to let the Budget percolate for a couple of weeks before summarising my thoughts. In trying to come up with a way to start describing the Budget’s ramifications, I stumbled upon a timely article in the Times (no pun intended).
The column by Jessica Cook discusses how tax, rather than lifestyle, is – in her opinion - a key driver in UK migration.
She notes: “Lifestyle used to lead the decision, with tax as the footnote. Today it’s the other way round. Protect the money first. Then worry about sunshine or where you can buy Branston Pickle.”
The emigration of more than a quarter of a million British citizens from our shores in the 12 months to June 2025 (according to ONS data) is what I would consider the most succinct way to sum up the direction of travel being taken by the current government.
Can we prove it’s because of taxation that these people have left? No, but I can at least say the Jessica’s words resonated with me, and variations on that theme have been uttered to me in recent times.
Continuation of tinkering
The Budget 2025 had no ‘big whammy’, but instead saw a continuation of what I’d described as ‘death by a thousand cuts’; tinkering around the edges that not only takes more than it gives, but increases complexity and therefore the compliance burden. And that burden will be felt by advisers as well as business owners.
Bearing in mind that chancellor Rachel Reeves had pre-warned us all that ‘things aren’t great’, the obvious move to raise income tax rates would have at least been clean and straightforward.
If I wanted to sum up the Budget, I’d say: if you’re working hard and ambitious, then the government is saying ‘that’s great but we’re going to tax you for striving’.
The NI increase last year has, I believe accelerated job losses and stunted recruitment. Automation and AI are supposed to augment and help us create better businesses, better experiences for consumers and enable job roles to evolve. But I believe current thinking in boardrooms is likely to be about cost saving.
Countries, and by proxy their government, have a choice: drive innovation and growth or focus on collecting and spending. If they want the latter, then you need to attract investment and smart people.
Vipul Sheth is founder and MD of Advancetrack
