Chancellor promises to build environment for small business to succeed

Chancellor of the Exchequer Rachel Reeves will call for more investment in small businesses at a summit of top business leaders in No11 this evening.   

Speaking to a room full of CEOs, investors and founders representing businesses of all sizes, the Chancellor is expected to say that entrepreneurs “have a friend in me” and give her personal commitment that the Treasury will do “all we can to see you succeed”.  

The reception in No11 follows the International Investment Summit, which secured investment commitments worth £63 billion – creating nearly 38,000 jobs and more than doubling the amount committed at last year’s Global Investment Summit. 

The Chancellor wants to drive up investment and ensure that smaller businesses get the capital they need to scale-up, addressing a funding gap that costs the UK economy hundreds of billions of pounds a year. 

Ms Reeves is expected to say:   

“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 like those in this room tonight …   

“Our role is to partner with you, to promote you, and to build an environment in which you can succeed …  

“Yesterday’s summit makes it clear that the UK is open for business, and it is open to business. 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.  

“So my message to you is simple. You’ve got a friend in me, and in the Treasury I run. We will do all we can to see you succeed; for jobs, for opportunities, and for growth.” 

The focus on delivering more investment in the UK economy is critical to address the funding gap for small businesses and women founders. An independent review of female entrepreneurship found that a £250 billion boost could be added to the UK economy if women started and scaled their businesses at the same rate as men. The Invest in Women Taskforce is working to create one of the world’s largest investment funding pools for female founders – worth over £250 million – financed by private capital. 

Tonight’s meeting will offer an opportunity for small businesses and female entrepreneurs to connect with leaders from the investment community as well as key Government and trade body figures. Small business leaders such as Alex Kendall from Wayve, Benjamina Bollag from Uncommon and Dom Hallas from the Startup Coalition will be in attendance. 

It follows a slew of pro-business announcements to attract investment, including a commitment to publish a Corporate Tax Roadmap at Budget, cap the Corporation Tax rate at 25% for the duration of the parliament, mobilise an estimated £80 billion of investment through the National Wealth Fund over the coming years and unlock pension investment in venture capital opportunities through a new British Growth Partnership as part of the British Business Bank.

Bespoke support for the film and high-end TV industry was also confirmed, with the government confirming a 40% relief on gross business rates bills for eligible film studios in England from 1 April 2024 until 2034 – promoting investment in new studio space and ensuring that the UK continues to be a world leader in producing film and high-end TV.