New Businesses: Investment
The question
To ask the Chancellor of the Exchequer, what steps her department is taking to change (i) the tax system and (ii) public sector funds to encourage further investment in start-ups and early stage companies.
Answered by Dan Tomlinson
The Government is committed to making the UK the best place to start and grow a business, recognising the importance of a competitive investment environment for economic growth.
The UK is already the best place in Europe to start a business, and Autumn Budget 2025 sets out measures which will unlock even more investment in UK entrepreneurs and innovators, including start-ups and early stage companies.
On tax, we are doubling the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) investment limits, and expanding eligibility for the Enterprise Management Incentive (EMI) scheme. These changes will encourage further investment in our most successful companies, and attract top talent to help companies grow.
On public finance, UK Research and Innovation (UKRI) will direct £7 billion to support innovative company growth, and, as a first step, Innovate UK will launch a £130 million Growth Catalyst programme to accelerate frontier firms. The British Business Bank (BBB) will increase annual deployment by two-thirds, aiming to unlock £26 billion of private capital alongside £13 billion in public funding, and enable up to £10 billion in small business lending through guarantees.
Together, these steps will strengthen the UK’s start-up and scale-up ecosystem, giving founders the confidence and capital to start here, scale here, and succeed here.
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