Chancellor calls for investment in small business

In the latest round of schmoozing investors, the Chancellor has met with business leaders to call for more investment in small businesses and start-ups.

Speaking to a room full of CEOs, investors and founders representing businesses of all sizes, the Chancellor Rachel Reeves said that entrepreneurs ‘have a friend in me’ and gave her personal commitment that the Treasury will do ‘all we can to see you succeed’.

The reception in No11 Downing Street followed the International Investment Summit, which secured investment commitments worth £63bn, creating nearly 38,000 jobs.

The Chancellor wants to drive up investment and ensure that smaller businesses get the capital they need to scale-up, addressing a funding gap with a lack of access to finance, but there are concerns that potential hikes in employer national insurance will have a dampening effect on their growth.

The Chancellor said: ‘We will be an active government, and we will do all we can to drive growth. 

‘But I am under no illusions. Growth is driven by the private sector, and by entrepreneurs. Our role is to partner with you, to promote you, and to build an environment in which you can succeed.

‘The summit on Monday makes it clear that the UK is open for business, and we welcome investment into companies of all sizes, big and small.

‘Our aim with all of this is crystal clear: to drive growth. And we must all work in partnership to deliver that.’

The focus on delivering more investment in the UK economy is critical to address the funding gap for small businesses and women founders.

An independent review of female entrepreneurship found that a £250bn boost could be added to the UK economy if women started and scaled their businesses at the same rate as men.

The Invest in Women Taskforce is working to create one of the world’s largest investment funding pools for female founders – worth over £250m – financed by private capital.

The meeting offered an opportunity for small businesses and female entrepreneurs to connect with leaders from the investment community as well as key government and trade body figures.

Small business leaders such as Alex Kendall, co-founder of AI specialist Wayve, Benjamina Bollag, CEO of bio-creators Uncommon and Dom Hallas, executive director of the Startup Coalition attended the event.

They also confirmed new support for the film and high-end TV industry with a 40% relief on gross business rates bills for eligible film studios in England from 1 April 2024 until 2034 – promoting investment in new studio space and ensuring that the UK continues to be a world leader in producing film and high-end TV.

However, small businesses are waiting to see how the Budget will affect them with concerns about rises in capital gains tax rates and a hike in employer national insurance all being trailed.

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