With Brexit underway, UK investors turn to the private sector

13th April 2017

Britain’s path towards Brexit has officially begun, with Article 50 triggered on 29 March and the two-year negotiation period now underway. While only two weeks into the negotiation period, the UK economy has showed no signs of slowing down as a consequence of Brexit – the Organisation for Economic Co-operation and Development (OECD) anticipates that UK growth will gain momentum over the coming months as a consequence of rising SME exports and high-levels of domestic household consumptions.

Meanwhile, Prime Minister Theresa May and Chancellor Philip Hammond have been busy touring some of the UK’s leading trade and investment partners, laying down the foundations for post-Brexit relationships that will open the country to new global opportunities. It is already being projected that exports from the UK will grow by 6.7% in 2017 and 5.3% in 2018 due to the strong economic forecasts stemming from the UK’s major international trading partners. This is positive news for British SMEs who will be able to seek trading opportunities across global markets.

In line with these positive economic forecasts, IW Capital research has revealed a bullish UK investor community that is optimistic about the future growth prospects of the nation’s thriving private sector. Our study, as featured in Investment Europe, found that 6.62 million investors in the UK believe entrepreneurs will play a critical role in driving private sector growth in the year ahead. The research also found that nearly 11 million people across the UK believe that Brexit will have a positive impact on their investment strategy in 2017.

Through this research, IW Capital revealed a growing appetite among investors for tax-efficient investment initiatives, such as the Enterprise Investment Scheme (EIS). Since its introduction in 1993/94, the EIS has effectively promoted private investment into SMEs through targeted tax relief – raising £14.2 billion for over 24,000 businesses. Our CEO Luke Davis was recently featured in Fund Strategy discussing how Brexit is an ideal opportunity for the Government to repeal state aid regulations that have restricted access to EIS and open the scheme up to investors seeking to support British SMEs.

To find out how EIS can support your investment strategy in 2017/18, download a copy of our company brochure here.