Published On 4/27/2026
Start-up companies in Britain are facing mounting pressure as a result of the recent tax changes made by the British government, in addition to the increase in the cost of transportation and production with the rise in energy prices following the outbreak of the Iran war.
The British newspaper The Telegraph reported that the number of new companies that were officially registered during the first quarter of this year was the lowest since the beginning of recording statistics, according to official figures.
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The newspaper added that about 78,655 new companies were registered in the first three months of this year, according to data from the National Bureau of Statistics, a decrease of 8% compared to the same period of the previous year.
During the same period, more than 83,200 companies closed their doors, which means that the final result of the movement of opening and closing companies showed a net loss for companies operating in Britain by about 4,500 companies.
These numbers contradict the declared policy of the British government headed by Keir Starmer, which aims to drive investments to increase growth and create job opportunities.
British Treasury Secretary Rachel Reeves confirmed during the presentation of the recent general budget that she seeks to support emerging companies, especially in the field of technology, to drive economic growth.
But it faces a dilemma related to the need for more revenues to finance public services such as education and health, which prompted it to raise taxes in various forms.
Criticism from the Conservative Party
Andrew Griffiths, responsible for the business and corporate file in the opposition Conservative Party, blamed Starmer’s government for the decline in the number of companies operating in Britain, and attributed this to its financial policy.
Griffiths told the newspaper that the numbers show “the catastrophe for the business sector,” as he described it, as fewer new companies started work, while businessmen leave Britain or stop their activities because they see that “it is not worth their efforts.”
Griffiths added, “For the economy to grow, we need a government that stands with entrepreneurs, but what we have is the opposite.”
The International Monetary Fund said that tax burdens are rising in Britain at a faster rate than in any other country among the major economies.
Impact of war and taxes
In addition to tax pressure, entrepreneurs face a significant increase in transportation, production, and service costs as a result of rising oil and gas prices following the outbreak of war in the Middle East.
The newspaper quoted Anna Leach, chief economist at the Institute of Directors in London, as saying that the Iranian war and the rise in energy prices have made the situation more difficult for entrepreneurs.
Yahoo Finance indicated that a number of billionaires left Britain recently with the change in tax policies, as taxes were imposed on the profits of businessmen residing in Britain for their work in other countries, in contrast to what was the case for many years, when wealthy people residing in Britain only paid taxes on their profits within it.
Among the most prominent businessmen who recently decided to transfer their residency outside Britain is the Egyptian businessman Nassif Sawiris, and before him the Egyptian-British businessman Mohamed Mansour took the same step.
Jim Ratcliffe, who owns 27.7% of the shares of the English Manchester United Football Club, also moved his residence to the Principality of Monaco after the recent tax changes.
