Following the news update that the United Kingdom government’s £100m entrepreneur tax relief package has now officially come into effect, CI received commentary from Leo Labeis, CEO and Founder of REGnosys, on just how sustained policy clarity and consistency is vital in effectively translating investments into long-term, sustainable growth.
As explained in the update, the particular package now unlocks £100m in investment for burgeoning UK based business entrepreneurs, as well as further expanding the number of firms that may be eligible for the EMI scheme and doubling the amount a company can raise EIS and CVT.
Although this initiative offered much-needed and welcome support to high-growth firms that are looking to scale, as founder confidence continues to drop, Leo claims that it must be combined with sustained policy clarity and consistency if the United Kingdom expects to remain competitive as a global hub for innovation.
Leo Labeis, CEO and Founder of REGnosys, commented:
“It’s encouraging to see government reforms come into force that aim to make it easier for high-growth companies to attract talent and access capital, especially at a time when founder confidence is under pressure. The UK already benefits from deep capital markets, strong regulatory frameworks and a vibrant fintech ecosystem, which continues to attract global investment and talent. Strengthening schemes such as EMI, EIS and VCT has the potential to build on that foundation and better support companies as they scale.”
They concluded:
“At the same time, continued clarity and consistency in policy will be important to ensure this translates into long-term growth, and that the UK remains competitive as a global hub for innovation.”
Indeed, global competition in business and the startup ecosystem has increased considerably. If the UK plans to maintain its lead in the fast-growing digital economy, then these types of initiatives will have to be supported by clear policies and greater clarity in how markets function.