The founders of Innocent Drinks, Charles Tyrwhitt and Justpark have joined a group of leading British entrepreneurs calling on the government to cut employment costs and strengthen support for startups, warning that the UK risks losing its most promising businesses overseas.

In an open letter seen by 13 entrepreneurs urged ministers to expand financial support for young founders, improve enterprise education and address the rising cost of hiring staff.

The intervention comes as Global Entrepreneurship Week UK kicks off on Monday, bringing together founders, investors and business leaders to discuss how startups can drive economic growth.

Signatories include Innocent Drinks co-founder Richard Reed, Charles Tyrwhitt founder Nick Wheeler, JustPark founder Anthony Eskinazi and Love Home Swap founder Debbie Wosskow.

While welcoming the government’s recent Budget rhetoric on entrepreneurship, the founders argued that more action was needed to help businesses start, scale and remain in Britain.

“We are mindful of the anecdotal and empirical evidence of entrepreneurs leaving the UK,” the letter said.

“We must stem the tide, and see the necessity, importance, and potential for our great founder-led businesses to stay and flourish in Britain.”

The group called for an expansion of the Young Entrepreneurs Allowance to help founders cover living costs during their first year in business.

They also urged ministers to reconsider the cost of employing staff, specifically highlighting employers’ National Insurance contributions and minimum wage levels.

“It should also think about what more it can do over the coming months to stem the cost of employing people.”

Founders warn over Britain’s scale-up problem

The warning adds to growing frustration among British entrepreneurs over taxation and the challenges of scaling businesses domestically.

Former Treasury entrepreneurship adviser Alex Depledge stepped down last month after accusing ministers of treating high-growth companies as a “sideshow” while prioritising traditional industries.

Meanwhile, ohn Healey’s recently announced Founders’ Relief has faced criticism from economists over eligibility rules that could discourage growth.

The scheme offers a 10 per cent capital gains tax rate on up to £10m of lifetime gains, but the Treasury estimates that just 600 founders annually will qualify.

Recent research from Rathbones also found that 5,774 British businesses were sold last year, the highest number in eight years, raising concerns that entrepreneurs are choosing to exit rather than expand.

Despite the challenges, the letter highlighted Britain’s strengths as an entrepreneurial economy, with 815,000 new companies incorporated last year and one in five adults either starting or running a business.

The founders also pointed to the UK’s position as the world’s third-largest venture capital market and its ranking among countries with the most unicorn businesses.

“As entrepreneurs who have started and scaled businesses in the UK, we are passionate that entrepreneurship has the capacity to bring about the much-needed growth in our economy,” they wrote.

Other signatories include Childs Farm founder Joanna Jensen, Primary Health Properties founder Harry Hyman and Arora Group chairman Surinder Arora.

The letter coincides with the Enterprise Summit on Monday, which opens Global Entrepreneurship Week UK, running until 22 November.