Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to improve access to growth capital for tech startups at (a) the scale-up stage and (b) other stages.

The Government is committed to improving access to growth capital for startups and scaleups, recognising their vital role in driving economic growth and innovation.

At Autumn Budget, the Government provided over £1bn across the years 2024-25 and 2025-26 for the British Business Bank to enhance access to finance for smaller businesses. This includes additional funding for the Future Fund: Breakthrough scheme, which co-invests in high-growth, innovative firms.

The Government is also working to unlock additional private capital for productive investment. The Government published the Interim Report of the Pensions Investment Review alongside the Chancellor’s Mansion House Speech on 14 November 2024. The proposed reforms in the Interim Report could potentially unlock around £80 billion of productive investment, while boosting savers’ pension pots. The Government will publish the Final Report in Spring 2025. This will further consider the opportunity for, and scope of, investment in the UK by pension funds.

The Government is also taking further proactive steps to increase investment in innovative businesses by creating and managing new funding structures that will deliver returns for investors and deliver capital to high-growth businesses. In November 2024, the British Business Bank completed its £250m Long Term Investment for Technology and Science (LIFTS) investment alongside Phoenix Group with Schroders Capital. The £500m investment vehicle will invest in UK late-stage companies focused on technology and science, with 20% of the fund expected to be invested in life sciences.

Additionally, two UK pension funds, Aegon UK and NatWest Cushon, have agreed to collaborate with the British Business Bank on launching the British Growth Partnership to crowd-in institutional investment into venture capital funds and innovative businesses here in the UK.