Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to support innovative and fast-growing firms during the covid-19 outbreak.

The Government is aware of the role that innovative businesses play in supporting economic growth as our economy recovers from the Covid-19 crisis. That is why my Rt. Hon. Friend Mr Chancellor of the Exchequer announced a £1.25 billion package to help protect firms driving innovation in the UK.

This package includes the Future Fund, which provides innovative companies with convertible loans, investing between £125k and £5m, on the condition that third-party investors at least match the Future Fund’s commitment. Developed by Government and delivered by the British Business Bank, the Future Fund launched for applications in May and will initially be open until the end of September. As of 12 July, the Future Fund had facilitated 429 loans totalling £420 million.

SMEs focusing on research and development are also benefiting from £750 million of grants and loans through Innovate UK.

This package builds on the government’s existing support for innovative, high-growth firms including the British Business Bank’s £2.5 billion British Patient Capital programme, internationally competitive R&D tax reliefs, and our commitment to increase public R&D spending to £22 billion by 2024-25.