Written by Mark Pearson
As the Chancellor prepares to deliver the Autumn Budget this week (Wednesday 30th October), Mark Pearson, founder of Fuel Ventures and one of the UK’s most prolific startup investors, has published an open letter to Rt. Hon. Rachel Reeves, urging the government to reconsider its planned abolishment of Business Asset Disposal Relief (previously known as Entrepreneurs’ Relief).
In his open letter, founder of one of the most active venture capital firms in the UK, Fuel Ventures, Mark Pearson argues that the abolition of Business Asset Disposal Relief will harm the next generation of British entrepreneurs, further disincentivising them to build their business in the UK
Reflecting on his own entrepreneurial journey, Pearson, who has invested over £200 million in more than 170 innovative UK startups via Fuel Ventures, warns that scrapping this vital tax relief will be a “devastating blow” to the UK's startup ecosystem, putting the future of British entrepreneurship at serious risk as he labels the government will “kill the start-up economy”.
Entrepreneur & Fuel Ventures founder, Mark Pearson’s Open Letter to the Chancellor of the Exchequer, Rachel Reeves:
Dear Rt. Hon. Rachel Reeves,
I am reaching out with an urgent plea to reconsider the planned abolishment of Business Asset Disposal Relief (previously Entrepreneurs’ Relief) in the upcoming Autumn budget. The decision to dismantle this critical tax relief is purely anti-entrepreneurship and could deal a devastating blow to the UK’s startup ecosystem, stifling the next generation of entrepreneurs who are the backbone of innovation, job creation, and economic resilience in our country.
My journey began in my bedroom with a simple idea for MyVoucherCodes, a venture that grew into one of Europe’s leading voucher code brands and ultimately resulted in a successful exit. This journey was not without hardship, risk, and personal sacrifice. Had these tax policies been in place when I began, I would not have been able to build and scale the business, let alone go on to establish Fuel Ventures. Today, through Fuel Ventures, I have had the privilege to invest over £200 million in more than 170 transformative businesses, have helped UK businesses create thousands of jobs, and have supported a new generation of British entrepreneurs who now face obstacles that could make the journey I took almost impossible.
Business Asset Disposal Relief was specifically crafted to reward and support individuals who risk their livelihoods to build something meaningful, knowing that they have a chance to see the fruits of their labour fairly rewarded. Removing this relief effectively penalises entrepreneurs, equating their high-stakes investments to ordinary income and stripping them of the incentives that drive innovation and growth. This move will not only reduce entrepreneurial efforts but will also send a troubling signal to both homegrown and international investors who see the UK as a hub for innovative ventures.
The UK’s competitive edge lies in its ability to foster an environment where entrepreneurs can thrive. Removing this relief sends a clear message that our government no longer values the unique contributions of those who create the jobs, pay the taxes, and drive the innovations that propel our economy forward - instead they’d rather kill the start-up economy. This is not just about individual wealth accumulation, this is about safeguarding a vital part of our economy that benefits society at large.
As you finalise the Autumn budget, I urge you to recognise the profound consequences of abolishing Business Asset Disposal Relief. Doing so may provide a small, short term boost to the Treasury, but it will have lasting negative impacts on the vibrancy and resilience of the UK economy. Encouraging and supporting entrepreneurship must remain a priority.
I hope ahead of Wednesday's budget you further consider the long-term implications of these policies on the UK’s entrepreneurial landscape. Let’s ensure that the doors remain open for tomorrow’s entrepreneurs who, like myself, are ready to build, innovate, and contribute to a thriving UK economy.
Yours sincerely,
Mark Pearson
Founder of Fuel Ventures
Speaking of his letter, Mark Pearson, Founder of Fuel Ventures, says;
“There are already enough challenges for startup companies, and this tax hike only accelerates that trend. I’m writing to Rachel Reeves with a final plea to not remove Business Asset Disposal Relief, as the implications will be catastrophic for UK startups and our entire entrepreneurial landscape.
“For the UK to remain competitive, we need policies that reward the risk and sacrifice involved in starting and growing businesses, not ones that punish it. Without Business Asset Disposal Relief, the door will close on countless entrepreneurs who won’t have the same chance I did. We’re calling on the Chancellor to reconsider this decision and stand up for the entrepreneurs and investors who drive our economy forward instead of making us further a country of anti-entrepreneurship.”
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