Sept. 23, 2022
The City had a mixed reaction to Kwasi Kwarteng’s budget speech, with the chancellor’s focus on growth welcome but the credibility of his plans under close scrutiny.
Tim Mills, Managing Partner at ACF Investors, said: “In a statement with a very welcome focus on growth and the future of UK economic success, the chancellor has given UK startups a major boost by guaranteeing the future of the EIS scheme, which provides £1.7bn a year in funding for some of the UK’s highest-growth businesses.
“Besides funding, fast-growing companies and their investors need one thing above all else – a consistent landscape of support. By providing clarity around this vital source of funding, UK startups have a much clearer runway for growth over the coming years. At a time of economic turmoil, the impact of that assurance cannot be understated.”
But Roger Clarke, CEO of Real Estate Stock Exchange, IPSX, said “In the absence of cheap credit, the government is attempting to pull all levers at its disposal to support household finances and consumer spending.
“It’s hoped that the widespread deregulation and cuts to headline tax rates will release a wave of investment and consumption, although there is much debate around the credibility of this loose fiscal approach,” he said.
Andrew Aldridge, Partner at Deepbridge Capital, said: “The new Chancellor’s overt commitment to the Enterprise Investment Scheme and Seed Enterprise Investment Scheme could well be the single most important decision he takes during his time at 11 Downing Street. These world-class propositions are fundamental to the creation of the innovative companies of tomorrow.”