Chancellor George Osborne has put ‘rocket boosters’ on the back of UK enterprise says Octopus Investments’ CEO Simon Rogerson.
In yesterday’s Budget the Chancellor announced the extension of Entrepreneur’s relief to external investors in unlisted companies and the abolishment of National Insurance contributions for the self-employed. In doing so Rogerson says the Chancellor recognises that entrepreneurial, fast growing businesses are the engine of UK economic growth.
“With yesterday’s Budget revealing an estimated drop in predicted economic growth for the UK, it has never been more important for the Chancellor to turn his words into actions when it comes to supporting high growth small businesses,” says Rogerson. “These companies are unparalleled drivers of local economic growth, creating one in three new jobs in 2014 and 20% of all economic growth despite representing just 1% of UK business.”
Indeed Rogerson says that creating an environment in which these companies can best flourish will help drive a regional revival and support the Chancellor’s ambition of rebalancing the UK economy and narrowing the North-South divide.
“Today’s Budget demonstrates that the Chancellor is addressing the fact that a one size fits all approach to supporting British business does not work. HGSBs are unique – both in their sheer contribution to the UK economy and in their needs as a rapidly growing businesses.
“The decision to extend Entrepreneur’s relief to external investors in unlisted companies is hugely welcomed. Our high growth small businesses are making a big difference to the UK’s economic growth but continue to struggle to access finance.”
According to Rogerson, yesterday’s measure joins other successful government initiatives over the years. These include the abolishing stamp duty on AIM shares, and launching Venture Capital Trusts and the Enterprise Investment Schemes, which he says are helping to attract investment into some of the UK’s most exciting and entrepreneurial companies.
He says: ““This Government has long voiced its ambition for the UK to be home to a thriving entrepreneurial spirit and scene. Yesterday’s Budget strongly supports this and continues to ensure the UK remains one of the most attractive places to start a business.”