---
title: "UK businesses eyeing shift to ‘more predictable’ tax regimes"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286349032.md"
description: "UK businesses are contemplating relocating abroad for a more stable tax and regulatory environment, as revealed by Baker Tilly International's mid-market survey. The survey, which included 1,500 business leaders from nine markets, found that 39% of UK firms have delayed or canceled major investments due to uncertainty from rapid policy changes. UK business leaders expressed the most pessimism about the economy's future compared to their global counterparts. In contrast, businesses in the UAE reported stable confidence despite regional conflicts, highlighting a stark difference in market stability."
datetime: "2026-05-14T03:05:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286349032.md)
  - [en](https://longbridge.com/en/news/286349032.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286349032.md)
generator: "portal-rs"
---

# UK businesses eyeing shift to ‘more predictable’ tax regimes

Thursday 14 May 2026 4:04 am | Updated: Wednesday 13 May 2026 5:14 pm 

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UK businesses are eyeing moving operations abroad 

UK businesses are considering relocating abroad for a more stable tax and regulatory landscape, according to new research from consulting and network Baker Tilly International. 

The group, in its annual mid-market survey conducted earlier this year, found that out of all nine markets and 1,500 business leaders surveyed, including in the US, China, and India, UK firms were “most likely” to move operations to markets with “more predictable tax and regulatory environments.” 

Among the UK organisations covered, 39 per cent have delayed or cancelled major investments due to “uncertainty caused by rapid policy changes.”

The survey was conducted between January and March this year, before the latest bout of Downing Street havoc, during which there have been numerous calls for Keir Starmer to resign as prime minister while a series of Labour ministers have stepped down. 

Francesa Lagerberg, Baker Tilly chief executive, told ***City AM*** that despite the research pre-dating the recent turn of political events, “there is clearly a trend” among British businesses worrying about the country’s market stability. 

“We have 39 per cent of UK organisations delaying, or in some cases even cancelling, major investments just because they want to know where the world is going,” Lagerberg said. 

The findings also show that the country’s business leaders are “the most negative” of all respondents about the economy’s future, pointing to consistent unease about market stability. 

## **UAE business confidence ‘stable’ despite Iran War**

By contrast, companies in the United Arab Emirates (UAE) reported the lowest level of market disruption from political swings out of all the countries and are the least likely to defer investment, despite the ongoing conflict from the Iran War. 

Lagerberg said the findings reflect the region to be “quite stable in terms of business, despite disruptions and conflict”, contrasting with the UK which is “experiencing a little more of a rollercoaster ride through the economic ups and downs.” 

The UAE is a renowned hotspot for global business due to its attractive, tax-efficient landscape with lower regulatory limits. 

Over 60 per cent of those surveyed believe regulation will “become more onerous and prescriptive” in the UK by 2035, which Lagerberg said “is not a surprise” considering the arguable over-regulation of many sectors. 

Lagerberg said the financial services industry is “particularly worried” about market instability and regulation impacting business, especially considering the recent uptick in cyber risk.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**