UK tech founders demand ban on long non-compete clauses to boost growth

A group of 22 prominent UK tech founders and venture investors have published an open letter demanding that ministers prohibit long non-compete agreements, extended notice periods and garden-leave provisions. The letter, signed by leaders from Elevenlabs, Synthesia, Fuse Energy and several AI start-ups, claims such clauses trap talent, lower wages and impede the rapid hiring needed in fast-moving sectors like artificial intelligence.

Comparing the UK unfavourably with California, where non-competes are largely unenforceable, the signatories say one outlet rules erode the country’s competitiveness and GDP growth. While the government has launched a consultation on reforming non-competes, the founders warn that without a ban companies may adopt alternative measures to restrict staff mobility. They also call for broader immigration reforms to attract and retain skilled overseas workers. The appeal comes as UK pension funds consider a £1 billion Scale-up Fund to channel more capital into high-growth tech firms.