Government’s Treasury Connect Supports Life Sciences

Chancellor Rishi Sunak recently spoke at the launch of Treasury Connect, an event intended to bring together fast-growing tech businesses with investors and politicians to spur innovation in areas such as fintech and life sciences.

Speaking at the launch conference, Sunak announced that he gave his blessing to a multibillion-pound trend that has seen foreign private equity firms snap up British businesses, saying this was “good news for the economy.”

He went on to say: “We’ve always been an economy that benefits from investment in it. I would view it as a sign of confidence in the UK. It’s good news for our economy.”

The Treasury Connect conference, held in East London, was the first of its kind, with Sunak bringing together the CEOs of the UK’s biggest investors and tech firms, including Funding Circle and Monzo, with Sunak leading four sessions on access to finance, Fintech, talent, and life sciences. Sunak spoke ahead of the Treasury Connect conference:

“I am delighted to bring some of our biggest tech firms and investors together today to celebrate UK technology and expertise at Treasury Connect,” he said. “These firms have huge economic potential and play a critical role in our future prosperity – creating high-skilled jobs and boosting the economy as part of our Plan for Jobs.”

Sunak went on to say: “Investing in these companies has the potential to accelerate innovations that will transform UK industry, develop new medicines and strengthen our position as a science superpower.”

Morrisons, which is the fourth-largest supermarket in the UK, is getting closer to a £7billion takeover by US private equity group, Clayton, Dubilier & Rice, and would be joining a list of household names that have already been taken over by private equity firms since the start of the pandemic in 2020. ASDA has already been taken over by private equity, alongside roadside assistance company AA.

At the conference, Sunak said the government was creating “the conditions for the UK to host tech businesses capable of rivalling Silicon Valley giants.”

In May 2020, the Government stood behind the sector by launching the Future Fund, which has so far supported nearly 1,200 firms in digital tech and life sciences, with a £1billion investment to date. Future Fund’s aim is to ensure that investment keeps flowing to the UK’s most innovative businesses, giving taxpayers equity in top-performing start-ups.

The latest date, released by the British Business Bank, shows the scheme is working, with some of these early investments now turned into stakes in high-growth firms, including healthcare company Cipher Surgical Limited, who developed keyhole surgery products, and Ripple Energy, a firm that allows customers to own shares of a wind farm.

“The Future Fund helped keep investment flowing to high-growth UK businesses during the pandemic,” said Catherine Lewis La Torre, the CEO of British Business Bank.

“Over £1billion of convertible loans were issued to more than 1,000 firms, and over 150 companies have already seen this funding convert to equity,” she continued. “The continued success of companies, such as those supported by the Future Fund, will be essential in ensuring the UK retains its world leading position in science, innovation and technology.”

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