Question to the Department for Science, Innovation & Technology:

To ask the Secretary of State for Science, Innovation and Technology, what assessment she has made of the impact of volatility in the US financial and venture capital sectors on the UK technology sector.

The UK has a world leading tech sector, with a dynamic start-up and scale-up ecosystem, and this week’s Budget further demonstrated this government’s commitment to its success.

The problems faced by Silicon Valley Bank in the UK stemmed from the actions relating to its parent bank in the US and are not a reflection of any weaknesses in the UK’s tech and life sciences sector. My department worked tirelessly with the Treasury to facilitate a solution which saw the successful sale of the UK arm of Silicon Valley Bank to HSBC, protecting deposits at no cost to the taxpayer.

In doing so we have protected our critical tech and life science sectors which not only drive economic growth across the country but also deliver life saving products.

These events show that we need to build a larger, more diverse financing system, where the benefits of investment in high growth firms are available to more investors. The Chancellor will provide a plan in the Autumn Statement later this year to deliver a more diverse financing system for innovative UK companies.