On Wednesday 23 November, Chancellor Philip Hammond delivered what would prove to be his first and last Autumn Statement. Having been appointed Chancellor following Theresa May’s cabinet reshuffle, Philip Hammond used the statement to reaffirm Britain’s entrepreneurial potential as a nation that is ‘open for business’.
British business productivity was a key theme, with the Chancellor announcing a wave of new investment initiatives to support scale-ups across the country. Emphasis was placed specifically on the regions – a much needed National Productivity Investment Fund of £23 billion is to be spent to enhance national innovation and infrastructure over the next five years. This is the biggest government investment programme to have been announced in over a decade.
Regarding specific venture capital initiatives to support business, the Chancellor’s commitment of £400 million in venture capital funds through the British Business Bank (BBB) is a positive step forward for scaling companies. The measure reflects a government that recognises the undeniable significance that private capital serves for growth.
With approximately 100,000 small businesses rejected each year by high-street banks, equating to £4 billion worth of business loans turned down, the injection of venture capital funds through the BBB will open these businesses to a new source of growth capital by unlocking £1 billion in new finance. To ensure high-growth tech companies are not absorbed by larger companies, the Chancellor stated that these funds will support the long-term scale-up potential of SMEs.
Having reviewed the policy announcements from the 2016 Autumn Statement, IW Capital’s private equity team has put together a round-up report highlighting the key reforms to affect investors and British businesses. This report is available exclusively to members of Access 42.
Register as a member of Access 42 for your exclusive copy of EIS in 2016: The Autumn Statement Round-Up Report.