Article published in The Daily Telegraph, 11 August 2026.
The Chanceller was quick off the mark in his first speech to Treasury officials last month, in which he set out his five priorities. Along with fiscal discipline and making life more affordable, John Healey said that growth, backing British business and creating wealth would be his mission. These three priorities are critical. But to be successful, the Chancellor must not shy away from recognising where growth comes from, and executing the policy that will turn these words into action. One such area is venture capital. The UK’s venture capital market is, by many measures, performing well. A recent report showing that the UK has the third-highest number of “unicorn” businesses – those worth USD 1 billion (GBP 740 million) or more – in the world attests to this. Technology companies are attracting material investment, and London’s position as a leading hub for early-stage funding remains strong. But spend time with founders, family business owners and investors outside the narrow corridor of AI and tech, and a different picture emerges.
If economic growth is to be the Government’s number one mission, then creating confidence among entrepreneurs, business owners and investors should be a key priority
Growth depends on confidence, not just capital
If economic growth is to be the Government’s number one mission, then creating confidence among entrepreneurs, business owners and investors should be a key priority. Entrepreneurs make long-term decisions in uncertain environments every day. That’s part of the job. But there is a difference between accepting commercial risk and navigating avoidable policy instability. At present, many founders, family business owners and investors are spending more time discussing what government might do than what they should be doing to grow their businesses. That should concern us. One of the most valuable actions the new Prime Minister and Chancellor could take in the coming months would be to provide clarity around some of the most damaging rumours relating to future tax policy. Confidence matters. Capital follows confidence. Growth follows capital.
Confidence matters. Capital follows confidence. Growth follows capital
Creating the best environment to start and scale a business
But certainty alone is not enough. The UK should also set out a bold ambition to become the best place in the world to start, build, scale and ultimately exit a business. The recently announced Scale-up Fund of GBP 1 billion for science and tech companies is a step in the right direction, but the Government should establish clear, long-term objectives for both the British Business Bank and National Wealth Fund, alongside increased funding capacity and a greater appetite to support a broader range of scaling businesses and sectors. The British Business Bank has become an increasingly important part of the UK’s growth ecosystem, helping address persistent scale-up funding gaps and crowding in private investment. The Bank itself has highlighted the ongoing challenges UK businesses face in accessing patient growth capital and has expanded its ambitions to mobilise significantly more institutional capital into scaling businesses – an initiative that any government seeking growth would surely back both in words and actions.
The UK should also set out a bold ambition to become the best place in the world to start, build, scale and ultimately exit a business
Unlocking investment to support long-term growth
The UK’s own savings system also presents a significant opportunity. Britain has trillions of pounds held within pensions and Isas, yet only a relatively small proportion finds its way into high-growth UK businesses. Other countries provide useful examples. Australia’s superannuation system and Canada’s pension funds have demonstrated how large, long-term pools of domestic capital can support productive investment while still delivering strong outcomes for savers. The recent Mansion House reforms are a positive step, with commitments that could unlock tens of billions of pounds of investment. We should build on that momentum. Another idea worth exploring is a “productive capital visa”, specifically designed to attract entrepreneurs, business builders and investors willing to deploy significant capital into scaling UK businesses, innovation and productive assets, rather than passive investments. Several countries are actively evolving their visa and residency models to attract globally mobile entrepreneurs and investment capital; the UK should ensure it remains competitive in this regard. If the Government is serious about growth, there is a significant opportunity to act decisively. Growth is ultimately created by millions of individual decisions made by entrepreneurs, business owners and investors. Government cannot create those decisions. But it can create the certainty, confidence and environment that make people willing to make them.
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