Home Business News What the Autumn Statement means for UK start-ups

What the Autumn Statement means for UK start-ups

by LLB political Reporter
23rd Nov 23 12:10 pm

Wednesday saw the Chancellor Jeremy Hunt unveil the 2023 Autumn Statement. Amongst the 110 new growth measures announced were several policy packages aimed at stimulating the UK’s start-up environment and investment landscape.

Claire Trachet, CEO/Founder of leading business advisory, Trachet, discusses what the host of new reforms mean for owners and business leaders looking to invest into the UK’s emerging technology start-up and SME sector.

Freeing up capital: Mansion House Reforms

The Chancellor announced a £320 million plan to unlock the first tranche of investment from his Mansion House Reform. These measures are expected to provide an extra £1,000 for pension pots every year, the aim being to help funds invest in high growth, innovative companies that will provide the backbone of the UK’s emerging tech sector in the years to come.

As the London Stock Exchange faces harsh competition from the New York and the European Union’s financial sectors, the move aims to build a stronger pipeline of potential company listings.

Investing into AI

Committed to making the UK an ‘AI powerhouse’, the Treasury has pledged £500m to boost AI development over the next two years, building on the success of the supercomputing centres in Edinburgh and Bristol.

The additional funding will bring the total planned investment in compute to over £1.5 billion, following a £900m commitment in the spring statement, allowing SMEs and start-ups to develop new AI models.

Support for R&D and loss-making businesses

A separate new growth fund at the British Business Bank, the UK’s state-backed development bank, will draw on a permanent capital base of £7bn, investing £250m to seed two investment vehicles under the UK’s Long-term Investment for Technology and Science (LIFTS) intiatives.

The Treasury has said that both vehicles will be accessible to pension schemes and could attract over a billion pounds in total private capital when combined with the Mansion House Reforms.

Claire Trachet said, “Yesterday’s Autumn Statement provided welcome news for what has been a turbulent economic period for the UK’s investment ecosystem.

“The government are doubling down on their backing for business growth in the UK, with the extension of the tax break as well as introducing measures to boost foreign investment, relief is on the horizon for companies that have been facing major economic challenges.

“The chancellor’s announcement comes hot on the heels of the lowest levels of inflation since June of last year and a second consecutive interest rate hold, showing strong signs of the UK economy rebounding, which can only spell positive news for businesses across the country.

“The government’s continued commitment to strengthening the country’s position in artificial intelligence through a further £500m in funding for UK AI will enable tech firms to bring cutting-edge products to market faster and ensure that Britain doesn’t lose its spot as a leader in Europe for this sector.

“Following on from the success of supercomputing centres in Edinburgh and Bristol, the government are doubling down on their ambition to make the UK an AI powerhouse.”

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