Experts Share: How Can The Autumn Budget Better Support Tech Growth?

Last month, the Chancellor had confirmed that the Autumn Budget will take place next month, on 26th. Many in the tech space want to see if the government will support the sector, which has shown strong growth even through a weaker economy. While the Budget will set out broader national spending, its treatment of innovation and small tech businesses will be watched for sure.

The government has spoken before about helping homegrown startups compete globally, but there has been little clarity on tax incentives or digital infrastructure investment. The upcoming Budget could change that if it gives clear direction on funding and business rates. Startups will be hoping for measures that make hiring and scaling easier in a market that has been difficult for early-stage companies.

There is also more attention on how public funding is distributed between regions. Many businesses outside London want more local investment, especially in areas that are starting to show faster growth.

 

How Strong Is The UK Tech Scene Right Now?

 

New numbers from RSM UK show that the number of new tech incorporations went up 36% YoY in the third quarter of 2025, reaching 15,470 compared to 11,368 last year. London saw 7,498 new firms open which is a 35% increase, and then the North West grew 41% and the West Midlands 51%. Wales recorded the biggest increase at 141%.

Compared to the previous quarter, tech incorporations went up 8%. Every region except Northern Ireland, Scotland and the North East saw an increase. This rise could mean that entrepreneurship in tech is able to continue even as inflation and borrowing costs impact many different sectors.

Analysts at RSM UK said the figures are a testament to how confident founders are in Britain’s digital economy. The growth across regions such as the South West and East of England shows that the country’s startup scene is growing, even outside the capital.

Ben Bilsland, partner and head of technology industry at RSM UK, said: “UK tech is showing resilience, with quarterly tech incorporations reaching another record high despite broader business confidence remaining subdued. The continued momentum in the UK’s booming tech ecosystem of high growth, successful companies will further reinforce the country’s position as a global leader in tech.

“Q4 may see further growth in the wake of positive messaging from the UK government on the tech sector and the US-UK Tech Prosperity Deal announced during the US President’s recent visit. This deal pointed to deep investment in AI, civil nuclear energy, quantum technologies and further frontier innovations. Leading US tech companies made multi-billion figure promises of investment into the UK as their CEO’s praised the UK’s tech ecosystem.

“Looking ahead, the government must address roadblocks to ensure growth of these tech companies isn’t stifled. Funding is crucial, alongside access to the right talent and skills, and a regulatory environment that balances innovation with protection. As we approach the Autumn Budget, all eyes will be on the Chancellor to unveil growth-friendly tax incentives for businesses and to protect the R&D tax scheme, which is a crucial pillar to support innovation and development.”

 

How Can The Autumn Budget Better Support Tech?

 

Experts have given their views on how the tech industry in the uK can be better supported through the Autumn budget…

 

Our Experts:

 

• Michael Olatokun, Founder, SkillStruct
• Matt Collingwood, Managing Director, VIQU IT
• Simon Walsh, CEO, OneAdvanced
• J.R. Farris, President and CEO, Accountalent
• Steve Sanghera, Chief Executive and Co-Founder, Inventus
• James Barnes, CEO & Founder, StatusCake
• Charlotte Sallabank, Tax Partner, Katten Muchin Rosenman LLP
• Mark Tan, International Tax Partner, Spencer West LLP
• Anton Roe, CEO, MHR
• Simon Noble, CEO, Cezanne
• Georgia Gibson-Smith, Senior Manager, Tech Tax Disputes and Disclosures, Menzies LLP
• Sachin Agrawal, Managing Director, Zoho UK
• Dr Keith Arundale, Senior Visiting Fellow, Henley Business School, Co-Founder and Director, Reading Tech Cluster
• Nic Conner, Partner, Parisi Consulting
• Rob Young, CEO and Founder, Infinity Group
• Ray Law, Co-Founder, moneyappi
• Stuart Mellis, Chief Financial Officer, Optalysys
• Ifty Nasir, Founder and CEO, Vestd
• Martin Hartley, Group CCO, emagine

 

Michael Olatokun, Founder, SkillStruct

 

 

“The UK tech sector remains one of our greatest engines for economic resilience but the Autumn Budget must go beyond tax incentives and funding announcements. To truly drive growth, we need a long-term strategy that links innovation with inclusion.

“This means investing in digital upskilling, particularly in underrepresented communities, and making it easier for start-ups and SMEs to access R&D tax credits, grants, and procurement opportunities without complex red tape. A more joined-up approach between education, enterprise, and employment would help close the skills gap and strengthen the talent pipeline that powers the industry.

“If the UK is serious about being a global tech leader, it must treat digital inclusion not as a social issue, but as an economic growth strategy, ensuring every region and demographic can participate in, and benefit from, our expanding digital economy.”

 

Matt Collingwood, Managing Director, VIQU IT

 

 

“Not to be too negative, but I do not believe we will see a positive outcome for the tech industry in the Autumn Budget.

In my opinion, the UK Government will likely lower VAT thresholds, which would have a direct impact on IT contractors. A larger proportion of contractors would need to register for and begin paying VAT, a move that might discourage some great professionals from pursuing contract roles. This would have an acute knock-on effect on the industry, especially for businesses that already experience critical tech skills shortages.”

 

Simon Walsh, CEO, OneAdvanced

 

 

“If we really want Britain to become a serious hub for tech and AI innovation, and to become an AI ‘superpower’, we simply must address the skills shortage that permeates the entire ecosystem.

“Having spent much of my career working abroad, the culture of innovation you find elsewhere is lacking in Britain. And that’s what’s needed if we’re to attract, nurture and, crucially, retain the top talent needed to scale new heights in tech. Talent needs the best conditions to develop and to thrive and we cannot afford to miss the golden opportunity we have to make the UK home to the world’s greatest minds in technology.

“The UK is indeed a brilliant place to work and to live. Let’s focus on making it a great place to innovate and push the art of the possible to lead on the global stage.”

 

J.R. Farris, President and CEO, Accountalent

 

 

“The autumn budget can help tech growth by issuing R&D credit refunds targeted at startups who have less that $5 million in revenue. These companies often develop IP long before any profits occur but have little cash flow to fund future growth. A refundable credit that could be sent to them with 60 days would provide them with the needed liquidity to hire engineers, improve develop products and grow faster. From my work with more than 2000 startups a year, I find that companies who receive their credits timely can reinvest about 30% more in tech personnel and infrastructure than those waiting for months for the credits to be approved.

“Also, if the tax compliance regulations governing R&D credits were simplified, this would have a large impact also. Many startups spend more than 200 hours each year managing the documentation necessary to file for credits. Standardised electronic submissions, and machine documented validations would reduce this time by 40%. This would leave the time for the startup founders to concentrate on innovation instead of paperwork.”

 

Steve Sanghera, Chief Executive and Co-Founder, Inventus

 

 

“Investment in technology is essential for the UK to maintain its position as a global leader in life sciences and clinical trials.

“The Government made it clear earlier this year how important this sector is to the growth of the economy when it unveiled its Life Sciences Sector Plan. Recent reforms, including the integration of AI and digital tools in clinical trials, have already helped cut trial approval times, giving patients faster access to potentially life-saving treatments.

“Looking ahead, the focus needs to shift from simply adopting technology to using it strategically. In this year’s Autumn Budget, I would like to see the Government do more to support the NHS to use digitisation to look at preventative health measures that help reduce patient lists here in the UK. There also needs to be an investment in digital infrastructure that addresses the tech skills gap so research teams can maximise the potential of these tools and ensure regulatory frameworks that encourage innovation while protecting patient safety.

“Patient recruitment in clinical trials is also still a key issue as is retention of patients once they embark on a clinical trial. At the heart of this is a need for technology to be easier for people to use.

“By taking these steps, the UK can create a research ecosystem that is not only more efficient, but also inclusive, patient-centric and globally competitive.”

 

James Barnes, CEO & Founder, StatusCake

 

 

“I’d say we’re a British success story, and have ridden out the ups-and-down of the last decade (my previous start-up weathered 2008), so we know what a tough environment looks like; but right now I think it’s the worst I can remember in my working life (30 years).

“The single most important thing the UK government can do for the tech sector right now is to restore certainty. Constant speculation about changes in tax and policy (e.g. employment bill), have made it nearly impossible for founders and investors to plan ahead with confidence.

“There’s a lot of talk about ‘slashing red tape’, which may help attract public listings in London, but most UK tech firms are SMEs. We’re not being strangled by paperwork; we’re struggling with an increasingly unfriendly tax and cost environment.

“If the government genuinely wants to encourage growth, it should focus on making it affordable to hire and retain talent. UK tech businesses are competing globally for developers, product people, and marketers. Payroll costs, national insurance, all make it harder to scale here than in many other tech hubs.

“And finally, give entrepreneurs a reason to build and stay in the UK. Over the past decade, Entrepreneurs’ Relief has been eroded from a 10% rate on generous caps to 18% and beyond. Founders take huge personal risks, often forgoing salaries and pensions for years. Being taxed at punitive levels on an eventual exit sends a clear message: success will be punished, not rewarded. If that trend continues, it will only encourage more founders to relocate abroad.”

 

Charlotte Sallabank, Tax Partner, Katten Muchin Rosenman LLP

 

 

“Rachel Reeves has stated that she is committed to support growth and investment and to cut ‘red tape’. Whether this will extend to tax red tape is another matter – the increased paperwork required to substantiate R & D credit claims since the press exposure of the exploitation of R & D Credit claims by unscrupulous advisers is a very real handicap for genuine R& D credit claims in the tech industry. Some relaxation here would be very helpful. Specific tax incentives for technology adoption have also been hinted at, but it is important that the incentives are not so hidebound by conditions as to make them unattractive for investors who may choose to seek easier markets for their funds.

“For SMEs 15% employers’ secondary Class 1 National Insurance Contributions are a heavy burden – introducing a reduced/zero rate of secondary Class 1 NIC for certain industry sectors such as tech (in addition to the current incentives in Freeport or Investment Zone special tax sites) could also help stimulate growth and investment in the tech sector.”

 

Mark Tan, International Tax Partner, Spencer West LLP

 

 

“There’s a global shift back to tax competitiveness. The U.S. is using targeted incentives to anchor AI and clean-tech investment, while Ireland continues to raise its R&D credit and Singapore actively courts AI projects – OpenAI’s planned multi-billion expansion there being a case in point. The Netherlands and Cyprus, meanwhile, are strengthening their IP Box regimes, effectively taxing innovation income at single-digit rates.

“Against that backdrop, the Treasury and Rachel Reeves have consistently refused to rule out higher corporate tax rates beyond 25%, while continuing to debate the future of reliefs and incentives, including carried interest. The fear isn’t just that rates will rise, but that short-termism driven by the electoral cycle leaves no room for purposeful direction. Investors need predictability and leadership that can articulate a long-term economic vision, not policy made in reaction to polling pressure. With the global minimum tax regime anchoring at 15% and competitive pressures building, the UK cannot afford to drift higher and expect capital to stay.”

 

Anton Roe, CEO, MHR

 

 

“For the Autumn Budget to genuinely drive tech growth, the government needs to go beyond short-term fixes and deliver long-term, structural support. Having spent 30 years helping MHR evolve through technological and workforce change, I’ve seen firsthand that sustainable growth depends on both investment in tools and investment in people. UK businesses need faster access to digital and AI funding, reform of public sector procurement to provide innovative startups and SMEs with a fair chance to scale, as well as R&D and tax incentives that reflect the realities of modern technology, including software, patents, and other intangible assets.

“Training must be central to this agenda. Skills employees learned just a few years ago may already be outdated in a world of digital transformation. Businesses can’t adopt new tools or drive innovation without a workforce equipped to keep pace. The government can support reskilling programmes, fund practical training, and encourage partnerships between industry and universities, helping employees gain the confidence and knowledge to use technology effectively.

“With the right combination of funding, incentives, and people-focused policies, the UK can build a sustainable, competitive tech ecosystem that thrives over the long term, rather than simply reacting to the pressures of today.”

 

Sam Rock, Managing Director, Crunch Media

 

 

“If the UK wants to cement its position as a global tech leader, the Autumn Budget must go beyond infrastructure and tax incentives, it needs to invest in the people who power innovation.

“The biggest barrier to growth is access to the right talent with the right skills. We’re seeing a growing digital skills gap among young people. While they’re highly tech-literate as consumers, many lack the practical digital and data skills that many businesses need. Without investment in early digital education and clearer pathways into tech, we risk a future workforce that slows growth rather than drives it.

“The Budget should also back scale-ups, not just start-ups, with incentives for employee share schemes, improved access to investment, and visa routes for high-demand tech roles.

“Finally, regional investment is key. Cities like Birmingham (where we’re attending Birmingham Tech Week this week) are fast becoming major innovation hubs. Recognising and supporting that regional momentum is vital for long-term growth.

“A forward-thinking Budget must connect fiscal policy with talent strategy, because no amount of R&D funding can deliver growth without the people to make it happen.”

 

Simon Noble, CEO, Cezanne

 

 

“If the Chancellor truly wants to unlock UK tech growth, the Autumn Budget shouldn’t launch new schemes — it should make existing ones usable. High-growth firms don’t need novelty; we need a system that doesn’t pull us away from running companies.

“We build HR software for employers across the UK and Europe. Every week I’m seeing organisations struggling with outdated processes, vague frameworks and eligibility rules that waste time and cash. The UK tech sector is rich in talent and execution, but operating within an infrastructure built for another era. Tax credits, grants and procurement are meant to drive innovation, yet too often obstruct it. You shouldn’t need a full-time grants strategist just to access existing support.

“The same goes for procurement. If it’s meant to boost innovation and productivity, it can’t remain biased toward incumbents with the time and muscle to navigate it. A SaaS vendor with a better product shouldn’t need consultants just to decode the rules.

“This Budget is a chance to back companies already building, hiring and exporting. We don’t need another rebranded funding pot with a fresh acronym — just simpler, digital, navigable tools so we can spend time building products that compete globally, not filling in PDFs that compete with no one.”

 

 

Georgia Gibson-Smith, Senior Manager, Tech Tax Disputes and Disclosures, Menzies LLP

 

 

Big changes to tax rates and thresholds?

“Perhaps the biggest rumours circling about the November budget have been related to a potential wealth tax. There is a wide call for this from various MPs and in the press, but to date there is no consolidated Labour plan to introduce such a tax. Economically, research demonstrates it could damage growth in the UK, as it could penalise saving and accruing capital. Alongside the abolition of non-dom tax rules, this could help drive tech investment out of the UK if wealthy individuals continue to decide to leave and invest elsewhere.

“Business Asset Disposal Relief capital gains tax rates have already been increased in previous announcements, so we hope that there will be no further changes here that could impact tech founders hoping to plan for their future exit.

“There are calls to scrap the Digital Services Tax, the 2% levy on revenues from large multi-national digital platforms such as search engines, online marketplaces, and social media services. Whilst this might help to drive more offshore investment into the UK, it would cost the government greatly.”

Tax reliefs

“R&D continues to be a huge source of funding for tech businesses. In the spring statement the government announced a consultation on R&D tax credits, and whether advance clearance could help reduce error and fraud in R&D. Responses to the consultation were due in May 2025 and we hope to hear some progress in this area particularly if this could help tech companies making legitimate claims have tax rebates processed and paid more efficiently.

“Elsewhere, research into the super-deduction capital allowances recently concluded. The research found that there is clear evidence that the availability of the enhanced capital allowances brought forward planned investment into the UK. If the government is looking to increase investment incentives, then this research could support the case for enhanced capital allowances which could be useful for tech companies who are looking to make capital purchases.”

Employee incentivisation

“There are some suggestions that the Chancellor may announce changes to salary sacrifice schemes which could impact the way tech companies structure employee remuneration packages. Salary sacrifice can be popular amongst employers particularly who make pension contributions, but it’s also used to provide other employee benefits. Rumours suggest that there might be caps introduced which would not be welcome news for more mature businesses with established workforces.

“Further impact to employee incentivisation might come in the way share schemes are operated. A favourite among tech employers, EMI and other schemes such as CSOP already have strict criteria. The government has recently introduced a measure that will allow EMI and CSOP option agreements to be amended to include a sale on a Private Intermittent Securities and Capital Exchange System (PISCES) which has already brought in flexibility here. The spring statement announced a series of roundtables to discuss tax advantaged share schemes and we hope that on the back of these the government will not tweak any scheme rules that would make them more prohibitive for tech employers.”

Investment in tech

“There have been recent announcements of offshore investment in the UK’s tech infrastructure. Jensen Huang, co-founder of Nvidia, has predicted that the UK will be an “AI superpower” and reports suggest OpenAI will be investing in the UK’s AI infrastructure as well.

“Meanwhile, US tech companies including Microsoft and Google have pledged a combined £150bn investment in the UK which is hoped to create 7,600 jobs. Although Nick Clegg has dismissed the figure as “crumbs from the Silicon Valley table”, these investments are part of the wider UK/US “tech prosperity deal” and help the UK government demonstrate its commitment to making the UK an attractive location for founders to start and scale technology businesses.

“At home, the Spending Review 2025 set out the government’s plans which committed to putting £2bn towards AI and £160m towards the TechFirst training programme, helping to ensure that the right skills are available to deliver future technological change. It would be great to hear more about how these combined investments will be deployed in the UK and how this might impact the tech sector more widely.”

 

Sachin Agrawal, Managing Director, Zoho UK

 

 

“The Autumn Budget presents a key opportunity for the UK Government to support business growth through smarter investment in Artificial Intelligence and digital transformation. AI is driving efficiencies across sectors, from data analysis and fraud detection, but to strengthen the UK’s position as a global tech leader, the Budget should support initiatives that help businesses leverage AI for real-time intelligence, agility, and competitiveness.”

“However, growth must be balanced with responsibility and the government should use this Budget to establish clear ethical frameworks for AI alongside strong data privacy standards that promote transparency, fairness, and human oversight. This will ensure innovation is guided by strong governance in order to maintain public trust.”

“It is equally important to invest in people and the Budget should prioritise comprehensive training and upskilling programmes to build AI literacy across the workforce. This investment must extend beyond major cities to nurture tech talent across the whole of the UK. By integrating AI education into schools, expanding reskilling opportunities, and ensuring access to digital skills for all, the UK can close potential skill gaps and create a more inclusive, future-ready economy.”

 

Dr Keith Arundale, Senior Visiting Fellow, Henley Business School, Co-Founder and Director, Reading Tech Cluster

 

 

“To support the innovative tech start-ups and scale-ups in the UK, we need the budget to continue with the successful tax incentives from prior years and to feature the following:

“No further increases to employer’s NI. The increases in NI from this April have eroded operating margins, and further increase could result in longer holding periods for portfolio companies with delayed exits and delayed distributions to limited partner investors of the private equity and VC funds.

“No increase to CGT. The Business Asset Disposal Relief (previously known as Entrepreneur’s Relief) is already set to increase to 18% in 2026. We may see some business being sold before the next tax year to avoid any further tax increase here, perhaps before reaching their optimal potential – and in the longer term it could result in reduced commercialisation of innovation and less opportunities for venture capital investment.

“No further increase to tax on carried interest of PE and VC funds, and commitments to drop plans to tax this as income rather than capital gains.

“Confirmation of the continued extension of the EIS and VCT investment schemes to 2035 which will encourage continued interest from investors.

“Most critically, we need more finance available for scale-ups in the UK. The Mansion House Compact and Accord is a great initiative whereby participating pension schemes will commit up to 10% of their funds to private capital, including much needed venture and growth capital to allow our innovative tech companies to fund scale-up without having to go out to USA VCs with their deeper pockets.”

 

Nic Conner, Partner, Parisi Consulting

 

 

“The story of this Budget is about public spending, or, more precisely, how Chancellor Rachel Reeves plans to find around £5 billion this year after the rebellion by Labour MPs over welfare reform, as well as tens of billions more over the coming years to stay within the government’s fiscal rules. The choices are limited: spending cuts, tax rises, or a combination of both.

“For the UK’s technology sector, the key priority is ensuring that any additional tax burden does not fall on innovation or investment. The Modern Industrial Strategy positions technology and advanced manufacturing as central to the UK’s future economic growth, and over-taxing these sectors risks undermining that ambition before it gains momentum.

“What is clear is that new spending is unlikely to go beyond the limits set out in the summer’s Comprehensive Spending Review, which means there will be little in the way of new public investment. The sector’s focus, therefore, should be on maintaining the right environment for growth: safeguarding R&D incentives, improving access to compute and skills, and reducing friction for scaling companies. In a constrained fiscal landscape, removing barriers matters as much as new money.”

 

Rob Young, CEO and Founder, Infinity Group

 

 

“The Autumn Budget arrives at a time when UK business leaders are navigating deep uncertainty. Many firms recognise the transformative potential of technology like AI and cloud computing, but hesitate to commit capital without clarity on emerging economic and political factors.

“This hesitation has consequences. Research shows that slow tech adoption has already cost the UK economy over £100 billion in lost productivity and turnover. Businesses that do invest in digital tools see measurable gains: higher output, better margins and faster innovation cycles. Yet the gap between digital readiness and implementation remains wide. The Autumn Budget must address this disconnect head-on.

“One way to do that is by reducing friction in the investment process. Enhanced capital allowances, like the former super-deduction scheme, have proven effective in accelerating tech investment. Reinstating or expanding these allowances could unlock stalled projects and give CFOs the confidence to act.

“R&D tax credits also need reform. The current system is slow, opaque and vulnerable to abuse. Advance clearance proposals are promising, but the Budget should commit to a streamlined process that prioritises legitimate claims and supports SMEs. For many tech firms, R&D relief is the difference between hiring and freezing headcount.

“The Budget must also recognise that tech adoption isn’t just a startup issue. Mid-sized firms and legacy enterprises often face the steepest barriers: outdated infrastructure, skills gaps and cultural resistance. Targeted support for digital transformation – especially in sectors like manufacturing, housing and logistics – would drive productivity gains across the wider economy.

“Talent remains a critical constraint. AI, cyber security and data science roles are in high demand, but the domestic pool of skills is thin. The Budget should expand funding for apprenticeships and retraining, and offer tax incentives to firms investing in workforce development. Reforming stock option taxation would also help retain top talent and keep founders scaling in the UK.

“Finally, the Budget must send a clear signal: that the UK is committed to responsible, high-impact tech growth. That means funding regulatory sandboxes for emerging technologies, supporting regional tech clusters and ensuring that digital infrastructure is treated as essential.”

 

Ray Law, Co-Founder, moneyappi

 

 

“The UK has long been a global leader in fintech innovation, but continued growth depends on targeted government support. As we look ahead to the Autumn Budget 2024, there are opportunities for the government to strengthen the sector. Measures that could make a real difference include simplifying regulatory processes for fintechs, enhancing R&D tax incentives, and ensuring access to funding for early-stage companies through initiatives like the British Business Bank.

“Clear, supportive policies could help fintechs scale, attract talent, and maintain the UK’s global competitiveness. Equally important will be decisions around employer costs, such as pensions and benefits, which affect workforce stability and retention. Fintechs operate in a fast-moving, innovation-driven environment, so any steps that reduce bureaucratic burdens while supporting financial and operational resilience will be critical for the sector’s continued growth.”

 

Stuart Mellis, Chief Financial Officer, Optalysys

 

 

“Any further increases to capital gains tax (CGT) in the Autumn Budget will be detrimental to the UK’s early-stage ecosystem. It’s crucial that the Government continues to support startups and scaleups to grow in the UK, and any tax hikes or changes to current relief rates for entrepreneurs will undermine that. It’s no secret that there is a significant financing gap between the UK and the US, so it would be encouraging for the Chancellor to create initiatives that encourage pension funds and other asset holders to invest in the private markets. The government’s rhetoric so far has been promising, but the action has lagged far behind.

“It is critical that we examine how the UK Government can become a customer of UK tech businesses. Right now, startups face too many hurdles to engage with government bodies, and many are forced to prioritise grant funding over commercial contracts because the risk is heavily skewed against startups. By streamlining procurement and adopting a more proactive approach, as we often see in the US, the UK can create a stronger pathway for early-stage companies to scale and compete globally.”

 

Ifty Nasir, Founder and CEO, Vestd

 

 

“The upcoming autumn budget is a vital moment for the government and continued focus will be on the chancellor’s efforts to generate the economic growth that could drive further investment. One tactic to generate this growth could be by expanding eligibility and awareness of employee share schemes.

“For fast-growing tech businesses, the appeal of employee share schemes is obvious: giving staff ‘skin in the game’ can be a key motivator in boosting productivity and retention.

“For startups that can’t compete right off the bat with market salaries, equity shares can be a welcome addition to any compensation package, levelling out the playing field for businesses fighting for top tech talent. The headache for many companies, though, is eligibility.

“Take enterprise management incentives (EMIs) as an example. These schemes provide a highly tax-efficient way of rewarding equity; if you’re eligible, there’s likely no better option to reward shares.

“However, EMIs are currently limited to companies with fewer than 250 employees and assets of under £30m. Plus, there’s a cap for individuals, of £250,000 over a three-year period. While initially appealing, businesses may find that EMIs are no longer possible for them as they scale – which is somewhat contradictory to the wider ‘pro-growth’ mantra.

“We’ve seen a worrying trend in big tech businesses and experienced staff moving overseas, so it’s vital that the UK remains an attractive place not just to have an idea, but to grow it, too.

“What’s desperately needed is a wider effort to make share schemes more accessible, whether through broadened eligibility criteria or a simplified process. Better access could help incentivise uptake, retain talent, and slow the ‘brain drain’ felt so acutely by the tech sector. To achieve that, further government backing is essential.

“While there have been rumours that the Chancellor might raise the cap on EMIs – a move that would be welcomed – until the Budget is announced, the uncertainty remains.”

 

Martin Hartley, Group CCO, emagine

 

 

“While the UK’s taxation landscape is challenging, startups can still benefit from initiatives like Seed Enterprise Investment Schemes (SEIS) and Enterprise Investment Schemes (EIS), which were extended to 2035. SEIS in particular have seen rising applications and funding. A significant increase in government support in the Autumn Budget is unrealistic, so tech firms need to invest time into making the most of all existing reliefs and funding streams available.

“More urgently, the Budget must tackle the sector’s growing skills gap. It is a major stumbling block and one which the government needs to acknowledge and help its tech innovators to overcome to support growth. Without skilled people, this sector cannot flourish. For example, currently R&D relief cannot apply to any work done abroad, with some very limited caveats. This just shoots the industry in the foot when many companies are forced to rely on talent from abroad for part of their operation because it simply isn’t available on home soil. Opening up the criteria here would support innovative firms where leaders’ hands are tied.”