Chancellor Rachel Reeves’ latest budget statement has, as expected, been met with a mixed reaction from the tech, investment and wider business community.
While measures to encourage entrepreneurship and scaleup growth have been met with praise, there remain concerns over the tax burden as well as lack of additional support in certain areas.
Government should be ‘applauded’ for scaleup incentives
The chancellor’s announcement of plans to increase access to the Enterprise Investment Scheme (EIS) and Enterprise Management Incentives (EMI) were the most universally celebrated from the industry.
“Increasing EIS caps is noteworthy and should be praised,” said Fred Soneya, co-founder and general partner at Haatch.
“For over 30 years now, this scheme has been vital in channelling investment into early-stage companies, and by lifting the amount a company can raise through EIS the chancellor will help ensure that the most promising scaleups can access more capital to support their long-term growth.”
The decision to extend eligibility for Venture Capital Trusts (VCT) was similarly applauded.
“This change means investors can support high-growth businesses for longer, helping ambitious management teams scale across the UK,” said Jamie Roberts, managing partner at YFM Equity Partners.
“It recognises that ambition exists everywhere, and now the investment can too. This kind of policy encourages sustained growth, creates jobs outside the major hubs, and strengthens the ecosystem for entrepreneurs and investors alike.”
Roberts noted this change will benefit regional businesses in particular as they often “scale over a longer timeline”.
Tech investment welcomed
Though particular investments into emerging technologies such as AI were only briefly touched on in the chancellor’s statement, its wider commitment to financial supporting AI and deep tech revealed last week have been welcomed.
“We welcome the UK Government’s commitment to targeted investment in innovation and the message that if you build here, Britain will back you,” said Cat Mora, director of research operations at Phasecraft.
“We strongly support efforts that streamline R&D funding, prioritise long-term partnerships in critical technologies like quantum and attract top global talent to the UK.”
Tanya Suarez, chief executive of IoT Tribe described the government’s AI investments as a “strong commitment to the UK’s technology ecosystem” but warned that more cash will need to be invested to “really shift the dial”.
EV commitments a ‘significant boost’ for sector
One sector that secured a major win from the budget is electric vehicles, with the announcement of new funding to support grants and the rollout of charging infrastructure.
Delvin Lane, chief executive of InstaVolt described the EV policy as a “significant boost” for the sector, however, he warned that the investment “must not be overshadowed by new cost pressures, including the introduction of pay-per-mile charging. Such policies risk reducing EV uptake and weakening the investment case for expanding the rapid-charging network”.