Andrew Aldridge from Deepbridge Capital reflects on yesterday’s Budget announcement.
It was no surprise that the March 2020 Budget didn’t include mention of either the Enterprise Investment Scheme or Seed Enterprise Investment Scheme. With both governed within EU state Aid rules, it is unlikely that there will be any tweaking or expansion by the UK Government until after we know the contents of any future trade deal.
However, it the Budget was hugely positive from Deepbridge Capital’s perspective, with the new Chancellor demonstrating a clear commitment to supporting small and scale up businesses, with particular reference to the tech and life sciences sectors. EIS and SEIS funding will play a key role in supporting the Government’s ongoing focus on these growth industries. The Chancellor naturally focused on minimising the short-term economic shock caused by Coronavirus and even here he specifically addressed the concerns of small businesses.
All in all, the Budget was a pro-business Budget focused and mentioned initiatives, such as further funding via the British Business Bank and an increase in the Research & Development Expenditure Credit rate, are designed to drive innovation in the economy.
This is all positive news for Deepbridge’s EIS and SEIS investee companies in the tech and life sciences sectors.