Ahead of the Budget tomorrow, senior leaders from VC firms Anthemis and CommonAI have shared their thoughts on what investors and founders most need from the Autumn Budget.
Amy Nauiokas, Founder, Group CEO and General Partner of Anthemis
“Earlier this year, the UK investment ecosystem showed real energy, with founders optimistic, capital flowing and strong momentum. But that progress has since stalled. The UK doesn’t have a savings problem – it has an allocation problem, and the Autumn Budget is a crucial moment to ensure capital is deployed more effectively to drive growth. While early-stage funding is improving, founders need support throughout their journey, especially at the growth and pre-profitability stages. We’re encouraged by the Government’s support for more innovative investment models, such as venture debt, but it’s vital this approach continues if we’re to empower the next generation of businesses.”
Mei Lim, Managing Partner, Anthemis
“A strong early-stage investment market is essential to the UK’s long-term growth, but key tax-advantaged schemes like EIS and VCT are no longer keeping pace. Inflation, rising capital needs and more time required to scale a company mean limits such as investment limits and company age eligibility need to increase as well. Increasing funding for Research and Development (R&D) tax relief and streamlining processing claims would align with Government priorities to support science and technology scale ups and regional growth. As the BVCA notes, without reform promising high-growth UK firms may look abroad for investment.
“Equally important is ensuring capital can move smoothly. HMRC processing delays continue to slow funding rounds, and uncertainty around tax, including potential income tax changes that could affect carried interest, undermines the UK’s competitiveness. The Autumn Budget is the moment to fix these barriers by strengthening EIS and VCT, streamlining HMRC processes and providing stable, predictable tax rules that give founders and investors the confidence to scale in the UK.”
