Autumn statement representation: developing a sustainable environment for business growth

This week we presented the Government with our research into developing a policy environment for sustainable business growth in the UK.

The UK is currently seen as a crossroads for global commerce, attracting overseas investment, international businesses and a highly skilled multinational workforce. These factors all contribute to the UK playing host to many world-leading companies and industries across sectors as diverse as advanced manufacturing, pharmaceuticals, IT, creative media, and financial and professional services.

The research highlights five recommendations to improve the current business and policy environment for the UK’s growth companies, allowing the nation to continue to play an important role in global economy:

1. Change the narrative surrounding the UK business environment for growth companies: Policymakers and Government, as well as business associations, should embark on a positive campaign around the UK’s growth companies. 

2. Strengthen business networks to help growth businesses to identify suppliers and customers and to access finance: Government should act to bring together business networks of all shapes and sizes, as relationships provide not only a customer base for smaller companies, but also a potential source of finance.

3. Further support UK businesses seeking to access overseas markets: We urge the Government to continue to promote to smaller firms the support and advice available through the Export EFG, by participating in trade delegations, and from the UK’s diplomatic missions overseas..

4. Provide clearer, simpler tax and investment incentives for business owners and their investors and employees: The Government could significantly increase the interest in growth company investment by simplifying the rules and conditions attached to incentive schemes – the lengthy and often complex conditions placed around schemes to close potential loopholes can dissuade potential applicants.

5. Consider the financing requirements of growth companies in shaping new financial regulation: When shaping new financial regulation in the UK and reviewing proposals made by the EU, the Government and parliamentary oversight committees should give particular consideration to maintaining the flow of capital that the UK’s financial services firms provide to growth companies in the UK and across the EU.

Chris Cummings, CEO of TheCityUK commented,

“It is important that policymakers, businesses, and the whole of society realise that we have an interest in maintaining the UK’s international business pre-eminence. Our research shows that there is a need to work with our colleagues across the European Union to shape new European and international rules to maintain the flow of international trade and capital on which the UK’s most successful industries are founded, whilst pursuing domestic policies which allow the UK to remain competitive, promote business investment and lead to sustainable growth.”