UK tech founders are urging Prime Minister Andy Burnham to limit non-compete clauses to match US rivals and boost innovation. A joint letter signed by over 20 founders, executives, and investors from companies including Eleven Labs, Synthesia, Ineffable Intelligence, Recursive Superintelligence, Fuse Energy, Olix, and Fractile argues that non-competes, long notice periods, and gardening leave hinder entrepreneurship and reduce competition. Teddy Collins, co-founder of Inherent Laboratories, said the changes are vital for AI sectors to keep pace with US advancements.

The letter comes amid government consultation on non-compete reform, with options including an outright ban, duration limits, or earnings thresholds. Access to talent has risen on the policy agenda after DeepMind staffers left to launch AI labs. The issue was discussed at a roundtable with ministers Louise Haigh, Varun Chandra, and James Purnell, and tech founders.

Over a quarter of UK employees face non-competes, per CMA research. While Germany limits non-competes to three months and Spain fines misuse, City UK’s Miles Celic and CBI’s Matthew Percival oppose changes, calling them unnecessary and unsupported by evidence.