Huel and Moneybox founders head to No 10 as Reeves courts scale-ups
The bosses of Huel and Moneybox were among dozens of founders headed to No10 on Monday evening, as the government wooed scale-ups with a sweeping package of tax and investment reforms unveiled in the Budget.
Rachel Reeves used the Downing Street reception to promote what she claimed was the most significant overhaul of entrepreneur incentives in more than a decade.
These include changes to the Enterprise Management Incentive (EMI) and Enterprise Investment Scheme (EIS), billions in new backing for science and tech companies, and steps to cut red tape for small firms.
The event came as ministers attempt to convince founders that the UK remains a competitive place to build high-growth companies at a time when rival hubs are moving aggressively to attract investment.
Reeves looks to scale-ups for growth
Reeves said the government was “overhauling the rulebook”, and making it easier for companies to hire, raise capital and expand.
Alex Depledge MBE, who will continue as the UK’s entrepreneurship adviser until 2026, said the reforms marked “a real step-change”, but stressed scale-ups needed a system that “backs the people willing to take risks”.
Among the measures, the government has doubled eligibility for EMI, extended option lifespans to 15 years and increased employee headcount caps.
Motorway co-founder Tom Leathes said the changes would allow scale-ups to “compete for world-class talent much longer into the journey”
Founders also welcomed the Treasury’s plan to consult on wider reforms to how the tax system supports entrepreneurs, while investors said clarity was needed as the sector adjusts to the government’s decision to cut venture capital trust (VCT) relief from 30 per cent to 20 per cent from next year.
This move was described by Hargreaves Lansdown’s Emma Wall as a “blow” for investors and early-stage businesses.
AI and tech adoption
The government also announced a £7bn investment into UK Research & Innovation (UKRI), targeted at companies working in priority industrial strategy sectors like clean energy and AI.
Ministers also launched a £130m ‘growth catalyst’ programme for science and tech firms.
A previous version of the scheme turned £156m of grants into £1.55bn of follow-on investment.
Space Forge co-founder Joshua Western said backing the sector was “more important than ever”, adding that the UK needed to “deliver capability and growth” across strategically critical sectors such as semiconductors.
The British Business Bank will direct 60 per cent of its venture and growth financing towards scale-ups, including at least five new Series B funds over the next five years.
A new £100m advance market commitment for AI chips aims to give firms guaranteed early revenue.
Alongside funding, ministers are attempting to accelerate business adoption of AI.
Innovate UK’s BridgeAI programme, which has already supported 3,000 businesses will be expanded to more industrial sectors.
There is also a £10m investment for the semiconductor sector in South Wales, tied to the government’s wider AI Growth Zone plan, and reforms to public procurement designed to give high-growth companies earlier access to government contracts.