Founders Back EMI2 but Want More Support to Scale | Founders Pulse

Founders say EMI2 announced in the Autumn Budget 2026 is a clear step forward and want to see the same approach extended to capital and scale-up support, according to our latest Founders Pulse.

The Autumn Budget 2026 arrived with several measures aimed squarely at founders including Founders’ Relief and the new EMI2 scheme. 

In our latest Founders Pulse, we spoke with around 100 top UK founders and startup leaders, including unicorn founders and leading VCs. The overall message is that whilst EMI2 is a welcome win and Founders’ Relief has the right intent, founders want changes to its design.

EMI2 Is the Clear Win

Among the key policy areas we surveyed founders on, EMI2 was the standout of the Budget. Around two-thirds of founders (65%) viewed it positively and very few were negative, with many seeing it as a practical way to hire and hold on to the talent they need to grow.

One of the four policy asks in our Autumn Budget submission, sent to the Government last month, was to expand the Enterprise Management Incentive (EMI) scheme further so it reflects the size and ambitions of today’s UK startups and scaleups. 

The Chancellor’s EMI2 announcement delivered on this as the limit on the value of shares employees can buy will increase from £60,000 to £120,000, the interaction with EMI will be removed, and the maximum period for exercising options will increase to 15 years. Crucially, EMI2 supports a broader employee population than EMI and is available to companies of all sizes and in all sectors so addresses some of the challenges facing rapidly-scaling organisations that quickly outgrow the current EMI limits.

Founders’ Relief Needs to Go Further

The newly announced Founders’ Relief offers a 10% reduced tax rate on up to £10m of lifetime gains, leaving more money with founders compared to standard tax rates. But there’s tight criteria to qualify: founders must have held 25% of the company’s shares from its beginning and for at least five years before selling; and the organisation must have turnover of at least £10m and at least 15 full-time employees; on top of meeting 2 out of 3 additional conditions. 

Views were split, with 46% positive and 37% negative. Whilst welcomed, there are clear concerns around the design. 

One growth-stage CEO said: “Restoring a 10% rate on £10m of lifetime gains is the most pro-founder signal from a Chancellor in years. I welcome it. The design creates a cliff, not a ladder.”

Others focused on who is left out. One late-stage founder said: “I started a business, grew it, employed 75 people and I would not qualify.”

A serial founder also pointed to viability saying Founders Relief eligibility had “so many strings it would get a puppet in a knot.” 

Ultimately, Founders’ Relief looked promising until founders looked more closely at the eligibility rules which they’ve described as complex and narrow.

What Founders Need Next From Government

For many, the Budget won’t change much in the short term; more founders expect the Budget to change little for their business than any other outcome. 

Founders want more ambition from Government. One scaleup founder added: “You need to think about what will make an impact rather than headlines.”

This could include bolder action like restoring the BADR thresholds that were halved in the budget, making R&D relief more effective, and unlocking domestic capital.

Currently, the pull from other countries is real, as founders consider relocating. One growth-stage founder said:

“France, Germany and several US states have approached me to move my company, with significant incentives. I know I’m not alone.”

EMI2 in this year’s Autumn Budget was seen as a win by the majority of founders. Now there’s a chance to go further. Widening the qualifying criteria for Founders’ Relief so those that the policy was designed for are able to access it, and pairing it with action on capital, would build on the progress in this Budget and send a strong signal that the UK wants to be the best place to build and scale.

If you haven’t already, join Founders Pulse and be part of the conversation. The more founders who contribute, the stronger the founder voice in Government will be.

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seen at 11:48, 12 November in Tech Nation.