The Chancellor Rishi Sunak laid out the Governments tax and spending plans to the House of Commons on Wednesday 27th October. This is a critical budget as the UK looks to rebuild the economy following the Covid pandemic.
Other than the introduction of the pre-announced Health and Social Care Levy and increase in dividend tax, there were no major tax changes announced by the Chancellor with more focus given to spending. Of particular note however, were a number of measures announced to support smaller businesses, to be delivered by the British Business Bank. Catherine Lewis La Torre, Chief Executive, British Business Bank, is noted as commenting on the BBB’s website:
“The package the Chancellor has announced today enables us to build on our range of programmes to support sustainable economic growth by increasing the supply, diversity and demand for finance for UK smaller businesses.”
Recognizing the success of the BBB’s three regional funds, a further £1.6bn commitment was announced by the Chancellor.
- £660m for the Northern Powerhouse Investment Fund, including an expansion into the North East of England
- £400m for the Midlands Engine Investment Fund
- £200m to provide a new fund for businesses in the South West of England, building on the Cornwall and Isles of Scilly Investment Fund
- £150m to provide a new fund for Scottish businesses
- £130m to provide a new fund for Welsh businesses
- £70m to expand provision for businesses in Northern Ireland
It was also noted that “additional funding for the Regional Angels Programme, which will enable commitments of a further £150 million over three years, investing alongside angel syndicates into high potential businesses across all the UK’s regions and nations. The programme has fully committed its initial £100m allocation, with 85% of investments outside London helping to reduce regional imbalances in access to seed and early-stage equity finance for smaller businesses.”
This is very welcome news as a thriving investment management sector is vital if we are to bounce back from ill effects of the pandemic, accelerate our move to a greener economy and to “level up” to ensure that every corner of the United Kingdom thrives.