The government opens consultation on growth incentives which could give a boost to Border-based remote and startup firms

For firms across the Scottish Borders and northern England, especially those that operate remotely or as early-stage startups, this consultation may offer rare opportunities to shape future incentives and benefit from a friendlier business environment.

The consultation focuses on a package of potential growth incentives aimed at improving the conditions for building, scaling and keeping businesses in the United Kingdom. Rather than making immediate changes, the Government has said it wants to review how tax rules, investment schemes and support structures can be improved. For regions that often feel overlooked by policies shaped around major cities, this announcement has been welcomed as a chance to highlight the needs of rural and Border-based firms.

Much of the Budget centred on raising additional revenue, but it also included early steps toward encouraging innovation and entrepreneurship. The Government confirmed that it would explore expanding or redesigning schemes that make it easier for new companies to raise investment. This includes reviewing the rules for employee share option plans, which allow staff to take part in ownership growth, and reassessing how investment incentives like the Enterprise Investment Scheme and Venture Capital Trust support can work for a broader set of businesses.

For remote firms, particularly those relying on online service delivery or distributed teams, these changes could be important. The nature of work in many communities has shifted, with remote operations becoming more common. Lower infrastructure costs, lower living costs and access to skilled workers who prefer rural life have helped these firms grow.

However, many still struggle to access investment capital or specialist talent. If the consultation leads to more generous incentives or a more flexible regulatory environment, remote firms may find themselves better placed to compete.

The Government’s Budget publication included the comment that the consultation will examine how to support companies that are growing fast. In its own words, it said the aim is to ensure that firms can expand without being pushed to relocate to larger urban centres.

That line is important for the Borders and other rural regions. Many successful founders have previously chosen to move operations to Edinburgh, Glasgow, Manchester or London in order to raise funds or hire specialist staff. The new strategy signals an intention to keep more of that growth activity rooted in regional communities.

The consultation also arrives at a time when international hiring and cross-border work have become more common for small companies. A digital firm in the Borders might employ developers abroad or share project teams across several countries. Understanding how to handle that legally and efficiently is becoming essential.

Another significant part of the consultation relates to investment incentives. Investors often prefer to back firms based in large cities because they have easier access to legal services, networks and financial markets. If the Government decides to widen eligibility for tax reliefs on investment, or reduce the administrative burden on smaller firms, more investors may be willing to consider startups based in the Borders. That could make a real difference to founders who currently feel that distance from investment hubs limits their chances of growth.

Not all reactions to the Budget were positive. Some business associations and financial analysts argued that the Government’s wider agenda, which includes tax rises on investment income and certain business activities, could overshadow any benefits of the consultation. A representative of a national business group said that parts of the Budget represented “a heavy load for firms already dealing with uncertainty.” The quote is taken directly from the Budget commentary and reflects concerns shared by some small business owners who feel cautious about expansion during a period of slow economic growth.

Still, many observers noted that opening a consultation rather than imposing new rules immediately is an encouraging sign. It allows businesses time to influence the direction of policy. For example, companies can provide input on how employee share schemes should work for remote teams, or how investment rules could better support firms outside major cities. This is particularly important for the Scottish Borders, where companies often rely on a mix of local talent and remote workers across the UK and Europe.

If the consultation leads to practical reforms, it may help level the playing field for rural and Border-based firms. A startup offering creative services, a tech company operating entirely online, or a small manufacturer serving both sides of the border could all stand to benefit. With better access to tax-efficient investment, more flexible share incentive rules and a recognition of the challenges faced by remote businesses, these firms may gain the stability needed to plan long-term growth.

Local entrepreneurs will now be watching closely to see how the consultation develops. Many have long argued that the UK’s regulatory system does not always reflect the realities of running a business outside major metropolitan areas. If the Government follows through on its intention to support growth across the whole country, the Borders could be one of the regions that sees real improvement.

It is too early to know what specific policies will come from this consultation, but the direction of travel is clear. The Government wants to gather evidence and reshape rules in a way that encourages innovation, supports job creation and reduces the pressure to relocate. For remote and startup firms in the Borders, this could mark a turning point. With the right incentives, they may finally be able to grow on their own terms and build a stronger future without leaving the communities that helped them start in the first place.