The key message from Chancellor Jeremy Hunt’s autumn statement was the government’s commitment to growth backed by what he claimed were 110 new measures for growth – including extending full expensing for corporate taxes, extensions to the EIS/VCT schemes for another decade, and a wide-ranging package on pensions reform.
Prime Minster Rishi Sunak backed up the ‘going for growth’ message with this week’s 2023 Global Investment Summit where he declared his ambition to make the UK “the best investment destination in the world.”
Having engaged closely with the Treasury in the run up the Autumn Statement, we are pleased with many of the steps taken in building the long-term framework needed drive investment into high growth businesses in the UK, and that going forward this will remain a focus.
The cross party consensus on the vital importance of growth and investment is stark.
At the New Statesman ‘Path to Power’ Conference on Tuesday, BVCA Chief Executive Michael Moore sat on a panel with Labour Shadow Business Secretary Jonathan Reynolds to discuss how can Britain can secure the fastest growth in the G7. Michael emphasised that boosting rates of private investment in the UK is a prerequisite for economic growth. Shadow Chancellor Rachel Reeves has likewise backed ambitious pensions reform, and we look forward to working with the Shadow Treasury team and Labour front bench on that agenda too.
This consensus is a huge opportunity for our industry and the UK. As our research shows, UK-led private capital funds in total have over £145bn of capital committed that is expected to be invested over the next 3-5 years. The private capital industry is well positioned to drive the transformation of our economy in the years to come and it is therefore crucial for the UK to sustain its global competitive edge.
Ahead of the 2024 election, both parties are working hard to demonstrate their ambitions to spur investment and growth.
At BVCA we are working hard to demonstrate that private capital will be at the heart of any Government’s plans to achieve this. Along with the policy and research consultancy Public First we will be running the Investment Commission. This will draw insights from our members and industry experts on three areas of particular importance: initially the green transition and clean energy, the UK tech sector, and investment in the nations and regions of the UK.
We want to make sure that politicians from all parties understand the barriers that make investment in the UK more difficult, and the programme will produce practical and workable policy proposals which can be implemented early in the life of the next government to make a tangible impact on the UK’s ability to attract investment and therefore support economic growth.
Director of External Affairs, BVCA