/

UK PM announces crackdown on non-compete clauses for startups

10 October 2026
70228
2026-10-10 11:54

UK Prime Minister Andy Burnham on Friday announced upcoming legislation to prevent the use of restrictive non-compete clauses that act as hiring barriers for start-ups and scale-ups. Burnham emphasized that some companies have gone "too far" with restrictive employment practices, trapping workers and choking innovation. 

Andy Burnham, UK Prime Minister said  "Non-compete clauses stop workers from joining a rival organisation or indeed setting up one of their own after they have left their role. And I think that's a drag on innovation and prevents the best really being energised and bringing that dynamism to the economy. So, we are looking at changing this." 

The policy announcement follows significant pressure from a coalition of more than 20 leading UK technology founders and venture capital firms.

-- End --