The Chancellor, Rachel Reeves, has called on business leaders to boost investment in small businesses and start-ups. Addressing CEOs, investors, and founders, she pledged the Treasury’s full support, stating that entrepreneurs “have a friend in me” and that they will “do all we can to see you succeed.”
This follows the International Investment Summit, which secured £63 billion in investment commitments and created nearly 38,000 jobs. While Reeves stressed the importance of increasing capital to help small businesses scale — particularly those struggling with limited access to finance — there are concerns that proposed employer National Insurance hikes could hinder growth.
The Chancellor also highlighted the significant economic potential of female entrepreneurship. An independent review found that if women started and scaled businesses at the same rate as men, the UK economy could gain £250bn. To address this, the Invest in Women Taskforce is creating a £250 million investment fund, supported by private capital, aimed at female founders.
Additionally, the meeting brought new support for the film and high-end TV industry, with a 40% relief on business rates for eligible film studios in England from April 2024 to 2034. This initiative is expected to attract further investment and maintain the UK’s leading role in film production.
However, small businesses await the upcoming Budget, with concerns over potential rises in capital gains tax and employer National Insurance contributions.
The Chancellor said:
“We will be an active Government, and we will do all we can to drive growth.
“But I am under no illusions. Growth is driven by the private sector, and by entrepreneurs. Our role is to partner with you, to promote you, and to build an environment in which you can succeed.
“The summit on Monday makes it clear that the UK is open for business, and we welcome investment into companies of all sizes, big and small.
Our aim with all of this is crystal clear: to drive growth. And we must all work in partnership to deliver that.”
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