Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to increase private investment in scale-up companies.

This government has been clear: our number one mission is driving economic growth to improve the lives of the British people. To grow our economy, we need more high quality, long-term investment. This means creating a new partnership with businesses and making sure Britain is the best place in the world to invest.

The government is strengthening the British Business Bank’s ability to support the UK’s fastest growing, most innovative companies by establishing the British Growth Partnership.

The British Growth Partnership is a new, pathfinder approach to the partnership between the British Business Bank and institutional investors that will further the government's goal, as set out in the Pensions Investment Review, of encouraging more UK pension fund investment into UK growth assets. The British Business Bank, the UK's largest domestic venture capital investor, will launch a new fund to attract pension and institutional investment into venture capital and innovative businesses, with the aim of making investments by the end of 2025.

The government expect both successful bidders of the Long-Term Investment for Technology and Science (LIFTS) competition, Schroders and ICG, to begin making investments via their new funds in late 2024, supported by pensions capital from Phoenix Group, with the aim of generating over a billion pounds of investment into UK science and technology companies.

To provide greater certainty for investors and businesses, we have extended the Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) schemes by ten years to 5 April 2035. This will ensure the schemes continue to be available to support scale-up companies.

Finally, in April 2024, the British Business Bank and Innovate UK signed a Memorandum of Understanding to help create new pathways for private investment into scale-ups, to better scale firms and address regional disparities.