10 October 2017

  |  CBI Updates Team

Update

Provide firms with the finance they need to grow

Last month, the CBI submitted its consultation response to HM Treasury’s Patient Capital Review, making a number of recommendations to help foster a greater patient investment culture and realise the UK economy’s growth potential across all regions and nations.

Provide firms with the finance they need to grow

Drawing on experience and expertise from across the CBI’s membership, the submission argues for Government to adopt a broad approach to assessing the origins of future growth, while ensuring a diversity of supply in finance.

For example, greater patient capital investment in high-growth firms by pension funds should be a long-term goal for Government. Similarly, short-term public investment is required to encourage long-term private investment. Further consultation is needed to assess the benefit of further public-private partnerships. 

Here, Government has a significant role to play in building on past success and enabling current private and public initiatives to do even more alongside broadening British Business Bank’s (BBB) ‘Help to Grow’ programme, to help SMEs across all regions looking to expand.

CBI members were also keen to highlight the need for clarity on the future role of the European Investment Fund, in light of Brexit, and the role of essential tax-advantaged programmes, such as EIS, SEIS, VCTs and Entrepreneurs’ Relief, which must be protected to help fulfil firms’ long-term growth ambitions.

Finally, while ensuring plurality of finance options is undoubtedly important, both demand and supply side policies are required in order to change long-term investment attitudes. Businesses across the UK must improve their awareness of the variety of finance options at their disposal.

To request a copy of the CBI’s full response, or for more information please contact Christopher Hulm