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Chancellor unveils £1.25bn package for UK start-ups

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Chancellor Rishi Sunak has announced a £1.25bn government package to support UK start-ups and businesses driving research and development during the COVID-19 crisis.

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The package includes Future Fund, a £500m loan scheme for high-growth firms, and £750m of support for SMEs engaged in research and development.

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In a statement Alok Sharma, business secretary, said: “The UK is a world leader in innovation and at this hugely challenging time, we know that young, fast-growing firms require tailored support to see them through. This wide-ranging package delivers important help that will protect some of the most dynamic sectors of our economy.”

Delivered in partnership with the British Business Bank and launching in May, the Future Fund will provide UK-based companies with between £125,000 and £5m, with match funding from private investors. According to HM Treasury, the loans will automatically convert into equity on the company’s next qualifying funding round, or at the end of the loan if they are not repaid. Eligible businesses will be unlisted, UK-registered and will have raised at least £250,000 in equity investment in the last five years.

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