Business · Companies · 12 hrs ago
UK Budget adds tax relief and support measures for startups
UK Chancellor John Healey announced new measures to support startups and scaleups in Britain in the government’s Budget.
A new Founders’ Relief would cut capital gains tax for founders and significant early investors in UK startups.
The Budget also raises the amount people can earn from a new venture tax-free from £1,000 to £3,000 and introduces a year of living-cost support for young founders.
For female founders, the government plans a new scaleup programme, and the British Business Bank will double its investment in female-led businesses to £200 million.
The government also announced a data centre covenant linking grid connections to local benefits, including jobs and protection for water supplies.
The measures aim to encourage investment and keep more startup growth in Britain, but the sources do not say when they will take effect.
The UK government announced Budget measures aimed at helping startups launch and grow in Britain.
The measures include a new capital gains tax relief for founders and significant early investors.
The government will raise the tax-free trading allowance for new ventures from £1,000 to £3,000.
A new allowance will cover a year of living costs for young founders, while a female-founder scaleup programme is also planned.
The British Business Bank will double its investment in funds for female-led businesses to £200 million.
The Budget also includes visa reforms and a new agreement setting conditions for data centres to receive grid connections.
- Who
- The UK government and Chancellor John Healey announced the measures.
- What
- The Budget introduced tax relief and other support for startups, founders and scaleups.
- When
- 28 October 2026.
- Where
- The United Kingdom.
- Why
- The measures are intended to help startups launch and scale in the UK and encourage entrepreneurs to build businesses there.
This story does not have two clearly opposing sides.
The UK government announced Budget measures to support startups and scaleups.
Chancellor John Healey set out the Founders’ Relief, higher trading allowance and young entrepreneurs allowance.
The government announced a female-founder scaleup programme and said the British Business Bank would double investment in funds for female-led businesses to £200 million.
Healey announced a data centre covenant linking grid connections for critical projects to conditions on local jobs, communities and water supplies.
- Founders’ Relief
- New capital gains tax relief for founders and significant early investors in UK startups
- Trading allowance
- Raised from £1,000 to £3,000
- Young entrepreneurs allowance
- Covers a year of living costs for young founders
- Female-led business investment
- British Business Bank investment in funds to double to £200 million
- Data centre covenant
- Critical data centres will receive needed grid connections in return for meeting requirements on communities, jobs and water supplies
2 sources
What people are saying
The biggest barrier to fast growth firms here in Britain is investment in Britain.
Britain does not lack great entrepreneurs. Too often, we invent technologies the world wants here in the UK and see the jobs and profits go somewhere else.
The chancellor has delivered the boldest action backing startups and scaleups of any government in years.