In today’s Autumn Statement Chancellor Philip Hammond has committed to “back businesses” in the UK, including extra financing for new firms and boosting investment in FinTech investments.
The Government will inject an additional £400m into venture capital funds through the British Business Bank, with £1bn of new finance for growing firms.
The Chancellor also promised to launch a Treasury-led review of the barriers to accessing patient capital in the UK.
Hammond says: “I am taking a first step to tackle the longstanding problem of our fastest growing technology firms being snapped up by bigger companies, rather than growing to scale.”
To support investment in UK FinTech, the Department of International Trade will provide £500,000 a year for FinTech specialists.
An annual report on key metrics for investors – State of UK FinTech – has been commissioned by the Government.
The Government will also launch a network of regional FinTech envoys and modernise the Joint Money Laundering Steering Group guidance on electronic ID verification for better technological access to financial services.
However, Multrees Investor Services chief executive Chris Fisher says he is “disappointed” that the Chancellor hasn’t done more to help businesses in the UK which are most likely to be affected by Brexit, in particular in the financial services industry.
He says: “Given the distinct ambiguity regarding Brexit and how it’s implementation will be felt across all industries, it is disappointing that Hammond did not deliver any key positive messages to help the businesses who with each day are facing uncertain futures.
“It is imperative that the financial services industry – the key revenue generator of the UK, is reassured and given strong signals that the UK Government is thinking ahead on how to keep its key industries competitive in a global environment. Hammond needs to think about this and start implementing ideas now ahead of article 50 being triggered.”