BREXIT – National Investment Fund To Support UK Despite Negative Influences

BREXIT – National Investment Fund To Support UK Despite Negative Influences

The Government has proposed setting up a national investment fund to help fledgling UK businesses thrive and compete with their US counterparts, even after Brexit.

The Treasury said on Tuesday that a consultation had identified a £4bn funding gap between US and British firms and that the new fund would “help address this gap and boost British business”.

It also highlighted that British businesses currently rely on financial backing from the European Investment Fund (EIF). One of the rationales for setting up a new dedicated fund would be to ensure that firms still have access to the funding they need, should cash flow from the EIF dry up after Brexit.

“Britain is an innovation powerhouse and it’s vital that we make sure our cutting-edge firms have the funding they need to meet their potential and conquer new markets,” said Chancellor Philip Hammond.

He added that ensuring the availability of finance would boost the UK’s productivity while also creating more well-paid jobs.

Mr Hammond said that the new fund could be set up either as a public-private partnership or be placed fully on the Government’s balance sheet and then sold off when it has established a sufficient track record.

Small and medium-sized businesses have been vocal about their concerns relating to Brexit, with many fearful of the impact of taxes and tariffs and restrictions on the free movement of people.

A survey of more than 1,000 investors, conducted by peer-to-peer trading platform Asset Match in July, showed that 54 per cent of respondents don’t think the Government can create a strong, global trading network outside of the EU.

On Tuesday, the Treasury said that it hoped the new fund would “help cutting-edge British startups become world-leading unicorns” – a term that denotes companies that have increased their valuation to above $1bn.

Although the UK currently leads Europe in the creation of so-called unicorns, it lags behind the US which accounts for 54 per cent of all unicorns globally. China accounts for 23 per cent, easily eclipsing the UK which is home to just 4 per cent.

Despite the EU doing everything possible to stop Brexit, the UK still has many supporters and will not lose their role as a world influence as stated by Lord Hague.

“Brexit will damage Britain’s ability to influence world events, former foreign secretary Lord Hague has warned.” 

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Ivy Heffernan

My name is Ivy Heffernan, and I am interested in a wide range of professions. Economics and politics at the age of 17 is easy when your father has a Ph.D in economics, i have been taught to put together technical analyst and stay up to date with the changing markets as well as what is happening in the political world. Marketing: This one comes as quite a surprise. As I never really knew my true potential for it. It began when I offered to help someone once with their seo, marketing and Web design for free. I'm only 16 so I knew no one would pay me for something I 'claimed' to be good at. Although thanks to analytic reports, it showed that from the seo I was doing the website got more than double its daily views. On top of that the owner was more than happy with the Web design and for marketing. Well for someone who only started a month ago, getting 10+ people a week I'd say is pretty good. Summary: I think being a well rounded individual on all topics is the most important thing to everyone, with the changing economies it's good to know that no matter what life throws at you, and no matter what job you are given, you'll always be capable.

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