We use cookies to improve your experience on this site. By viewing our pages, you give us consent to use cookies. Find out more.

Chancellor Rishi Sunak Expands The Future Fund

Posted 2 years ago

Chancellor Rishi Sunak Expands The Future Fund
Share this article:

In a widely anticipated move, the Chancellor of the Exchequer Rishi Sunak has expanded the Future Fund to accommodate businesses that contribute significantly to the UK economy, but do not have their parent company based in the UK because they participated in a non-UK based accelerator programme.

The announcement comes after data published by the British Business Bank showed less than a month after opening for applications, the Fund had nearly run out of money

The government initially committed £250m in loans as part of a £500m fund that was equally shouldered by private investors. However, the government has now approved £320m worth of future fund loans to more than 320 early-stage firms. The Treasury has confirmed that the scale of the scheme will be kept under review.

Changes to the scheme’s eligibility criteria will mean that UK companies who have participated in highly selective accelerator programmes and were required, as part of that programme, to have parent companies outside of the UK will now be able to apply for investment.

Accelerators are selective, open and competitive programmes for early stage companies, offering access to industry mentorship, seed or venture capital and other professional support.

One of the conditions of joining some accelerator programmes outside of the UK is that the businesses are required to create a non-UK incorporated parent company

Rishi Sunak said: “Our start-ups and innovative firms are one of our great economic strengths. As we begin to bounce back from coronavirus they will help drive our recovery and create new jobs.

“This change means that those start-ups who have strived to be the very best, and taken opportunities to grow their business, will be able to benefit from our world-leading Future Fund.”

However, the changes announced today still don’t address the incompatibility with other tax efficient schemes, an issue that has been raised for early stage investors. 



Authors: Oliver Murphy & Sacha Bright

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.

Tagged: coronavirus equity crowdfunding news sme



Be a contributor to our blog click here to contact us
Click here to sign up to our newsletter

0 comments

Log in to comment

We reserve the right to remove comments which are inappropriate and/or offensive.
Comments are not the opinion of Nextfin.uk. Please read the comment guidelines
  • Internet Business Awards Category Award Winner 2015
  • Hertfordshire Business Awards Finalist 2014

As seen in:

  • The Guardian
  • Financial Times
  • Yahoo! Finance
  • The Times
  • The Daily Telegraph