UK falls to 24th spot in the world's best countries to start a business: We reveal the full top 50

Britain has fallen to just 24th in the global rankings of the best country to start a business – amid fears that the Budget could make things even worse.

The findings by research firm Opinium suggest that soaring taxes and costs mean entrepreneurs would be better off in Spain, Iceland or Malta than the UK.

They come as separate figures show a 'wave of selling' as one-third of wealthy investors in Britain dump assets in the run-up to the Budget in two weeks’ time over fears of a capital gains tax (CGT) raid.

Opinium’s global rankings of the countries with the best conditions for entrepreneurs show that over the past ten years the UK has tumbled from 19th in ‘a gradual deterioration of its relative competitiveness as a place to do business’.

Over the past year it slipped from 23rd to 24th spot, dropping behind Spain and implying entrepreneurs would be better off starting out in Barcelona than Birmingham.

It adds to evidence that Britain is become ever less attractive for wealth creators after recent figures showing an exodus of billionaires worth £120 billion since Labour came to power.

The poll did not cite specific policies but they cover a period when the government has been piling more and more cost hikes onto firms.

They include a sharp increase in employer National Insurance, steep rises in the minimum wage, both of which have made it more expensive to hire staff. Firms have also been hit by botched business rates reform and the introduction of a raft of new workers’ rights.

Opinium’s findings showed that half of entrepreneurs believe the overall conditions for running a business in the UK have worsened in the past three to five years.

The poll revealed 57 per cent of entrepreneurs believe it is harder to start a business than it was ten years ago, with higher business and operating costs and economic uncertainty the biggest factors, as well as the cost of hiring staff – all ranking above the impact of Brexit.

And 45 per cent think it will even become more difficult to start a business over the next ten years.

Commenting on the survey, the UK’s small business commissioner Emma Jones said: ‘The UK can’t afford to stand still in creating the conditions for businesses to start and grow, as other countries race ahead in nurturing their own entrepreneurial base.’

Capital gains tax fears lead investors to sell up

Meanwhile, figures from wealth manager Wealth Club showed 35 per cent of investors have sold assets or plan to do so before the Budget over fears of a CGT hike.

And 56 per cent say they would be less likely to sell investments after any hike.

The findings come after it emerged this week that Chancellor John Healey has rejected calls to increase the rate of CGT to the same level as income tax – which could mean an increase from 24 per cent to as much as 45 per cent for higher rate taxpayers.

And 56 per cent say they would be less likely to sell investments after any hike.

However, it is still possible that he could opt for a smaller rise.

Alex Davies, founder of Wealth Club, said CGT tax hike rumours ‘are driving a wave of selling of investments by wealthy investors’.

He added: ‘If a rise is implemented, it could lead to investors holding on to investments for longer than they would normally want to in order to avoid higher bills.

‘The net impact of a rise in CGT rates could mean the Treasury raising less revenue as a result of a measure intended to boost receipts.

‘More importantly perhaps an increase in CGT rates could have the effect of making the UK a less attractive place to invest with the knock-on effects on economic growth and employment.

‘Governments have to make decisions on revenue and face a wide range of challenges but the impact on investor behaviour of a major rise in CGT would not deliver the results they want.’