As Britain approaches the snap general election, the UK economy strides forward

Following the decision of the British public to leave the European Union (EU) in June 2016, there was initial speculation that economic growth would stagnate and investors would lose confidence in making long-term investment decisions outside of traditional asset classes. However, in the months following the EU referendum, the UK’s economy proved resilient – supported by a robust and buoyant private sector. As a result, UK GDP grew by 2% at the end of last year, with current forecasts anticipating similar levels of growth in 2017.

This week, it was reported that Britain’s dominant services sector grew in April at its fastest pace since the beginning of the year. Moreover, the rate of growth experienced by the services sector in the opening months of 2017 is already outpacing much of the growth since in 2016. Contributing to approximately 78% of UK GDP output, the services sector is continuing to propel the UK economy forward during this significance time of transition.

With evidence demonstrating the continuing growth of the UK economy, IW Capital recently released new research revealing how investors are planning to manage their financial strategy over the coming 12 months. In particular, our latest report examined the asset classes investors are planning to incorporate into their investment portfolio in the year ahead. The results were resoundingly positive – a significant proportion of UK investors are gravitating towards SME investment, with a particular preference for tax-efficient investment instruments such as the Enterprise Investment Scheme (EIS). Recently, CEO of IW Capital Luke Davis spoke with the Financial Times about the significance of EIS in catalysing private sector growth. You can read the full article here.

Britain currently finds itself in a position of strength, supported by an expanding economy and an investor community willing to embrace new opportunities outside of traditional classes, including SME investment. In light of this, it is important that following the snap General Election on 8 June, the next government charged with negotiating Britain’s withdrawal from the EU prioritises the interests of the private sector. Doing so will ensure Britain can forge a post-Brexit identity that champions the country’s innovative and disruptive community of high-growth scale-ups.