Letters: Political turmoil must be swift
[Re: Them’s the breaks’: Defiant Boris Johnson resigns as Prime Minister, yesterday]
The uncertainty around who will replace the prime minister goes hand in hand with the uncertainty facing British businesses, including rising startups. The government’s disruption is self-inflicted, but the disruption caused to Britain’s early-stage funding market has been entirely inflicted upon startups.
The new leader of the Conservative party has an opportunity to immediately put the government squarely behind early-stage startups. The timing cannot be better, following the Treasury Committee’s inquiry into the UK’s Venture Capital industry in June, which will help support the innovative businesses here in the UK.
Firstly, the next leader must act urgently to remove the Enterprise Investment Scheme (EIS) sunset clause, which is preventing would-be investors from making commitments they would want to make. Secondly, they could double the Seed Enterprise Investment Scheme (SEIS) funding cap to allow new startups the capital needed to launch and be competitive in the global market.
The pressure on our early-stage funding market was growing before the pandemic and long before rising inflation began compounding problems for startups and investors alike. These are two simple changes that could unlock the pressure that is currently suffocating Britain’s innovation funnel.
Stephen Page