A new £375m scheme to drive investment in the UK’s most high growth, innovative and R&D intensive firms opens today in a move designed to supercharge the UK’s post-pandemic economy. Telford is a hub of many hi-tech and manufacturing businesses and local MP Lucy Allan has encouraged companies across the town to apply for the new scheme.
The Government will commit £375 million of funding to fast-growing firms looking to raise at least £30 million of investment. To be eligible, businesses must have commitments of 70% of an investment round from private investors with a track record of financing innovative companies - such as venture capitalists. The government will co-invest with private investors to help scale-up innovations across UK industries including life sciences and clean technology – driving the economy and creating jobs across the Telford, Shropshire and the West Midlands. This builds on previous financial support made available by the Government over the course of the pandemic. In March 2020, the government introduced the Future Fund which successfully supported the high-growth sector during the pandemic so that its potential was not subdued. This scheme provided more than £1 billion of convertible loans to 1,190 businesses to help them through the pandemic. The UK’s most innovative companies are key drivers of future growth and it is estimated that 1% growth in these firms could grow the UK economy by £38 billion.
The new scheme will span across the UK’s world class industries including life sciences and green technology. It will accelerate the deployment of breakthrough innovations that could solve some of society’s greatest challenges – from developing life-saving new medicines to technologies that support the UK’s transition to net zero. It is part of the government’s multibillion-pound investment in research and development to help build a future economy, create skilled jobs and cement the UK’s status as a scientific superpower. Enterprising towns like Telford will lead the way in creating jobs and industries of the future.
The Chancellor of the Exchequer, Rishi Sunak MP said:
Our Future Fund: Breakthrough scheme will enable innovative businesses in every corner of the UK to access the finance they need to scale up and bring their transformational technologies to market - all while creating high-skilled jobs and boosting the economy as part of our Plan for Jobs.
Technology and innovation will be at the heart of our future economy which is why we are investing billions in R&D to help cement our status as a world-leader in this field.
Above all, our investment will incentivise collaboration between our most ambitious entrepreneurs and private investors, helping to commercialise breakthrough products such as new medicines and green technologies that could change our lives for the better – all while creating high-skilled jobs that help boost the UK economy.
Business Secretary, Kwasi Kwarteng MP said:
The support we have provided over the past year is not only helping firms to survive the pandemic, but also driving the growth and jobs of the future, making the UK a global innovation powerhouse.
The original Future Fund was a tremendous success in helping cutting-edge firms to get the fuel in the engine they need to really motor forwards, and we are building on that with the fresh Future Fund: Breakthrough scheme.