Start-ups must continue to be supported

The Institute of Directors (IoD) has warned all political parties that, whoever wins the election; start-up businesses must continue to be supported, either by the European Investment Fund (EIF) or by whatever is brought in to replace it.

The IoD is urging all parties to back young businesses and provide a rapid resolution to questions of future access to the EIF, which channelled €2.3bn into UK venture capital funds between 2011 and 2015. It also asks for clarification over what will replace the EIF if access to it is cut off.

The Institute also highlights the need to retain the pool of foreign talent available to start-ups, particularly in the tech sector, which relies heavily upon workers from across the globe.

In addition, the IoD would like to see a trial on higher tax reliefs for investments outside London and the South East in a bid to boost business start-ups setting up outside the capital.

As a spokesman for the IoD said, boosting entrepreneurship has been a success story for the UK over recent years, so it is vital this continues as the UK prepares to leave the EU.

He added that Brexit has thrown up questions on funding for growing businesses, such as whether the next Government will aim to maintain access to the EIF or, how it will make up the shortfall.

The IoD’s statement follows calls from the Confederation of British Industry (CBI) and the British Chambers of Commerce (BCC) for the new Government to focus on job creation and a long-term vision for the economy.

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