Overview
- The Prime Minister confirmed on Friday that the government will legislate to stop non‑compete clauses blocking hiring by promising start‑ups and scaling firms.
- Ministers have not yet defined whether the reform will be a full ban, a partial ban with salary or role thresholds, or limits on length, and they plan formal consultation to set the details.
- City and financial lobby groups warn the move could weaken protections for confidential information and intellectual property and say some contractual limits are needed to protect business interests.
- Workers in finance and big tech can currently face lengthy notice periods and gardening leave of up to 18 months, which founders say prevents hires and forces some companies to recruit from abroad.
- The pledge is part of a wider innovation strategy tied to the chancellor’s October 28 Budget and may be paired with regional funding and tax measures to keep high‑value firms and jobs in the UK.