Article published in The Telegraph, 15 May 2026.
The UK has long been a global leader in ingenuity. From the pioneering AI clusters of the Golden Triangle to the graphene laboratories of the North, we possess a density of intellect that remains the envy of our peers. Currently, we sit as the world’s third-largest venture capital ecosystem – a position of strength that reflects our national talent for disruption. However, a subtle but concerning trend has emerged. Too often, our most promising firms are nurtured by British capital in their infancy, only to see their equity exported just as they reach maturity.
I have seen highly successful entrepreneurs have to watch their companies move from 100pc British-backed to majority foreign-owned in a matter of years. When the decisive “scale-up” capital arrives from overseas, it can often come with strings attached: the relocation of intellectual property or the shifting of strategic headquarters. This is not a lack of ambition on the part of our founders; it is a mismatch in our capital markets. To ensure the UK remains a global competitor, we must bridge the gap between our significant national savings and our restless innovators.
To ensure the UK remains a global competitor, we must bridge the gap between our significant national savings and our restless innovators
A nation of savers – but not investors
One significant challenge faced today in the UK is a lack of risk appetite for investing. This is borne out by the fact that British savers hold over GBP 350 billion in cash in their Isas. While these accounts provide essential security for savers, their value is often eroded by inflation. Whilst I am not suggesting a wholesale shift of these savings into high-risk ventures, it is clear that a broadening of horizons is required.
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learn more If even a fraction of this capital pool was diverted into start-up and scale-up businesses through regulated funds, the impact on private enterprise could be transformative. The task of the Government is not overly complex or even expensive. We need a tax-advantaged structure, such as an early-stage/scale-up Isa to encourage individuals to invest more broadly in the British success stories of tomorrow. We would envisage this having incentives such as a grossing up of contributions at investors’ marginal tax rates, tax-free growth and the ability to offset capital losses.
But this must also be paired with a renewed focus on financial literacy. We need a collaborative effort between the private sector, the Government and the education system to build people’s confidence in understanding and managing risk – with an end goal being to democratise investment and increase the wider public’s engagement as shareholders in UK businesses.
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Mobilising pension capital for growth
Similarly, our pension system is one of the largest in the world, holding more than GBP 2.5 trillion in assets. Yet our domestic risk appetite remains modest compared to our international rivals – and there is insufficient focus on the returns that pension funds are generating for their pensioners. The Mansion House Accord of last year, which saw 17 of Britain’s largest pension funds voluntarily commit to increasing their exposure to UK assets, were a welcome step towards encouraging institutional investment in private markets.
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learn more But there is more to be done. We need government help to further incentivise pension providers to follow through on these commitments. Specifically to ensure that there is effective channelling of this investment to scaling-up businesses. We also strongly advocate for companies that provide pensions to increase the education of their employees in relation to the management of their defined contribution (DC) pension plans.
Too many DC pension assets are left in default investments, often with a more defensive bias than is needed
Too many DC pension assets are left in default investments, often with a more defensive bias than is needed. With a little more knowledge, investors could take greater ownership of their pension wealth and invest more broadly, notably in UK businesses.
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Linking capital, policy, and long-term growth
To complement domestic investment, we should also rethink how we attract global wealth. A proposed productive capital visa would represent a fundamentally new approach to attracting global wealth into the UK economy by directing investment exclusively into active, trading UK private businesses. This would be structured to channel capital into growth-oriented SMEs, scale-ups and strategic sectors – thereby supporting innovation, employment, and long-term competitiveness.
By aligning our national savings with our national genius, we can ensure that the UK is not just a place where ideas are born, but where they flourish and stay
This new visa would differentiate itself from prior schemes through strictly productive investment criteria, robust due diligence, and clear economic outcomes. This would have the benefit of unlocking high-value foreign investment while safeguarding the integrity of the UK’s financial system.
Finally, the Treasury can best support this ecosystem by providing stability. Venture capital operates on a long-term horizon. Constant tampering of the tax environment, notably capital gains and business asset disposal relief, employer National Insurance contributions and inheritance tax, creates a “complexity tax” that can deter even the most committed investor.
The state’s most effective role is to set clear, long-term boundaries and then allow our entrepreneurs the space to grow. The talent and capital already exist within our borders; they are simply waiting to be connected. By aligning our national savings with our national genius, we can ensure that the UK is not just a place where ideas are born, but where they flourish and stay.
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