Dear Prime Minister & Rt. Hon. Rachel Reeves,

We, the undersigned entrepreneurs and business leaders, are writing to express our deep concern regarding the government’s decision to scrap Entrepreneurs’ Relief. This policy change risks severely undermining the entrepreneurial spirit that has been a driving force behind the UK’s economic growth and innovation.

We understand the need for tax revenue to support essential public services such as the NHS and public infrastructure. However, Entrepreneurs’ Relief - now Business Asset Disposal Relief - was specifically designed to recognise and reward the immense personal and financial risks taken by those who start and grow businesses. Scrapping it entirely will send the wrong message to entrepreneurs and investors alike.

Entrepreneurs come from all walks of life, making significant sacrifices to build businesses that create jobs, contribute to the economy through taxes, and support community growth - often long before they see any personal financial reward. Our motivation goes beyond accumulating wealth; we innovate, solve problems, and improve the society we live in. The removal of Entrepreneurs’ Relief will not only devalue these efforts but also discourage others from embarking on new ventures.

Growing a business is fraught with risk - 95% of businesses fail within their first five years. Entrepreneurs’ Relief was one of the few mechanisms in place to ensure that the reward for success reflected the scale of the risks involved. Without it, taxing entrepreneurial gains at the same rate as regular income will make the UK a far less attractive place to build a business. Entrepreneurs may seek opportunities in more favourable tax environments, taking jobs and innovation with them. This policy will harm the economy more than it helps.