Castore Co-Founder Warns Against Labour's Potential Tax Hike

Thomas Beahon, co-founder of the rapidly growing sportswear brand Castore, has expressed concerns about the potential impact of a capital gains tax increase on the UK's economic growth. His comments come as Labour prepares for its upcoming conference and the October Budget.

Beahon emphasized the importance of supporting entrepreneurs and innovators, stating, "I struggle to see how [increasing capital gains tax] aligns with a stated governance strategy of wanting to give us the fastest growth in the G7." He highlighted a common misconception about who pays capital gains tax, noting that it often affects small business owners and entrepreneurs who have served their communities for years.

Castore's success story exemplifies the potential for UK-based startups. Founded in 2015 with a £25,000 loan from the Beahon brothers' parents, the company has grown to a valuation of nearly £1 billion. Castore now sells 10 million football kits annually and has partnerships with prominent teams such as Bayer Leverkusen, Everton, and the England cricket team.

Despite this success, Beahon expressed concern about the UK's attractiveness for entrepreneurs and investors. He noted, "I do hear a lot of people genuinely talking about, 'Is the UK the right place to be?'" This sentiment reflects broader worries about the country's economic direction and tax policies.

Castore has chosen to remain private, avoiding the constraints of public markets. Beahon explained, "If you're asking me, if we were to list the business tomorrow morning and would that be a net benefit for the business, I couldn't hand-on-heart say it would be." However, he added that listing on the London Stock Exchange remains an aspiration.

The company has faced challenges, including issues with Premier League football kits in 2023. Beahon addressed these concerns, stating that Castore is now in a "very different position" after recent investments in its supply chain and infrastructure.

Looking ahead, Castore aims to expand internationally and compete with global giants like Nike, Adidas, and Puma. Beahon emphasized his commitment to building a UK brand that competes on the global stage, rejecting the idea of selling to larger competitors.

In conclusion, Beahon called for a more inspiring economic vision from Labour leadership. He stated, "As a leader, your job is to inspire people, to create a vision. We absolutely do need a vision. What does the future look like, according to Starmer? And what is his view about a better Britain? We haven't seen that yet."

"Clearly, there has been a lot of talk at the moment around the capital gains tax. I am far from an expert but I struggle to see how that aligns with a stated governance strategy [of] wanting to give us the fastest growth in the G7."

As Labour prepares for its conference and the upcoming Budget, Beahon's comments serve as a reminder of the importance of balancing fiscal responsibility with support for business growth and innovation in the UK economy.