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Post Brexit government must prioritise British entrepreneurship, warns IoD

The Institute of Directors has today released the first of a new series of manifesto papers, urging political parties to prioritise the advancement of British entrepreneurship in a post-Brexit world.

The body’s Let’s Push Things Forward series will cover central issues such as tax, employment, infrastructure, trade and more, as it calls on government to commit to a series of measures following the general election next month.

With much uncertainty surrounding the future direction of the UK economy and British business at large, the Institute has asked whether retaining access to the European Investment Fund will be a priority in Brexit negotiations.

UK venture capital funds received €2.3bn from the EIF between 2011 and 2015, yet it’s unclear whether this will continue after the UK leaves the EU.

Moreover, official reviews (Dafforn and Buffini) on entrepreneurship and long-term investment have been stalled by the general election. The body is calling on government to not only resolve this but to communicate effectively what happens next.

The full manifesto can be viewed here.

Jamie Kerr, Head of Entrepreneurship and Tech Policy at the IoD, explained: “Boosting entrepreneurship has been a UK success story over the last few years, and as we prepare to leave the EU, enabling business to set up and grow will be even more vital.

“Brexit has introduced questions on funding for growing companies. The European Investment Fund has channelled billions to UK firms through venture capital funds, but the future of this stream is in doubt.

“After the election, we need to know whether the next Government will argue to maintain access to the EIF post-Brexit, and if not, how it will make up the shortfall. If future collaboration with the EIF is not their aim, ministers should beef up the capacity of the British Business Bank as soon as possible so it can pick up the slack.

“This Government had launched reviews into entrepreneurship and patient capital before the election was called, and we would urge whoever is in power after June 8 to see them through. In the era of increased regional devolution, it’s also crucial that start-up activity reaches all parts of the UK, so we are calling for a trial of increased tax relief for investments outside the South East.”

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