Billionaire exodus should not be UK’s headline concern
Billionaires are good for headlines, but it’s what’s happening lower down the corporate food chain that interests financial commentator Susannah Streeter
Entrepreneurs’ exodus
The lowdown on Britain’s billionaires always piques interest, but the latest rich list published by The Sunday Times landed right in the middle of Labour’s implosion, adding more fuel to the political fire. The headlines have been dominated by evidence of a fresh exodus of billionaires and multi-millionaires leaving the UK, following the abolition of non-dom rules and changes to inheritance tax.
But this fixation on the flight of the ultra-wealthy, who have far fewer financial roots in the UK and can leap into low-tax jurisdictions with ease, misses the bigger issue.
What should be more concerning is what’s happening lower down the corporate food chain.
Nearly 6,000 business owners have “quit” the UK over the last two years, while those who have remained have faced significantly greater challenges raising capital. With Dubai one of the most favoured relocation hot spots, the number this year may end up bucking the trend, as war has sent many seeking refuge back here. But given that many of these entrepreneurs and innovators should be the engine of growth for the UK, right now their spark is still at risk of being extinguished.
Modesty is holding back entrepreneurs
Amid the political drama, it was heartening to see that there’s a hard core of UK founders and funders still determined to find the recipe for growth. Thankfully, there hasn’t been any tinkering with the incentives available for investors in Seed Enterprise Investment Schemes, which fledgling companies in the UK rely on to ramp up their businesses. I led the scale-up panel at SFC’s Capital Investor Day, highlighting successful strategies. London’s neoclassical Victoria House in Bloomsbury was such an apt location. It was built for an insurer that pioneered life insurance for the working classes; now it has become a state-of-the-art life sciences hub, a demonstration of how Britain’s economy needs to move with the times.
One of the biggest takeaways the audience latched onto was how modesty and the great British reserve could be holding UK entrepreneurs back, and how a dose of American confidence could help innovators tell their stories with a lot more vim and vigour.
The great British getaway
There have been plenty of tales of woe about holidays interrupted by the conflict in the Middle East over recent months. Although immediate fears of jet fuel shortages have receded, concerns about the potential for cancelled flights or diverted journeys have meant bookings have been on the back foot. But it could prove to be a silver lining for UK hospitality. As we hurtle towards the half-term holiday, there are high hopes that another great British getaway will unfold this year, with expectations for staycations rising.
It’s worth a reminder, though, to book direct. One hotelier gave me the lowdown recently on the tiny percentage he receives if reservations are made through sites like Booking.com. It can often barely be worth hosting travellers if they rock up on a reduced rate and spend nothing in the bar or restaurant. It’s always worth picking up the phone and asking for a deal directly – you’ll make a manager very happy and could get an unadvertised deal or upgrade.
Driving the economy: The Wheels of Mum and Dad
While plenty of families are navigating school exam stress, there’s a whole lot more anxiety around for anyone trying to book a driving test. The average waiting time in England has now exceeded 22 weeks. There’s hope that a change in the rules – allowing only learners to book and manage their own examinations – will help combat the use of bots, which were being used to secure test slots and resell them at inflated prices. But there’s still a shortage of examiners, so it’s not going to be resolved immediately.
This is also a huge headache for people running rural businesses. I stayed at the magnificent Kentisbury Grange in the rolling hills of Devon recently, where finding staff is a challenge, particularly as so many young people are still waiting for a test. Three cheers to the brilliant waitress’s mum, who has been acting as a taxi for months while she waits for a test slot. It’s not just the Bank of Mum and Dad, but the Wheels of Mum and Dad, that are keeping the economy moving.
The pointe of Pollock
While Michael Jackson’s biopic is on its way to smashing box office records, another Jackson is now stealing the headlines. Artist Jackson Pollock’s piece, considered to be one of the first truly abstract paintings, has just sold at auction for $181m, making it the fourth most expensive artwork ever sold. Pollock has a history of stealing the limelight. Coincidentally, this week I was lucky to be able to attend the opening night of the brand-new ballet Uncaged+, inspired by Pollock and his wife, the expressionist painter Lee Krasner.
Her brilliant work was arguably overshadowed by her husband, but is now being thrust front and centre in this inspiring new show, choreographed by the Director of the New York Theatre Ballet, Antonia Franceschi, with music composed by the late, great Claire van Kampen. With Edward Watson, star of the Royal Ballet, also performing his incredible solo piece Asylum, this performance in Bristol is a delight on so many levels. As Lee Krasner once said, “I like a canvas to breathe and be alive” – and Uncaged+ does exactly that.
Susannah Streeter is a financial commentator and the chief investment strategist at Wealth Club