Overall verdict for entrepreneurs
The Entrepreneurs Network’s Founder, Philip Salter, said:
“To his credit, the Chancellor put the long-term interests of British businesses front and centre of the Autumn Statement.
Entrepreneurs will be particularly encouraged to see the sunset clause for the Enterprise Investment Schemes and Venture Capital Trusts, which have been such important drivers of UK startups, extended until 2035. With Labour also backing the policy, making full expensing permanent will give businesses the incentives and certainty to invest. And while it’s not perfect, the compromise on a merged R&D tax credits scheme is long overdue and will hopefully give clarity to businesses that have been disrupted for years by so much chopping and changing.
With the OBR’s growth forecasts down, Hunt is right to focus on Britain’s businesses as the key driver of prosperity. It’s just a shame that this long-term thinking has not always been present in other fiscal announcements made in the last 13 years.”
On steps to commercialise more academic research
The Government announced it would be accepting all of the recommendations of the Independent Review of Spin-outs. Among these recommendations are calls for: academics and their institutions to agree spin-out deals on market terms which avoid unnecessary negotiations; greater disclosure of deals to increase transparency; and the ability for universities to use funding to cover the costs of university technology transfer offices.
Responding to the announcement, The Entrepreneurs Network’s Head of Research, Eamonn Ives, said:
“Ensuring that as much of the research as possible which takes place in Britain’s universities can be turned into dynamic companies will be essential for growing the economy and tackling problems such as climate change or our ageing population. In theory, the recommendations made in the Independent Review of Spin-outs represent a good first step for enabling academic entrepreneurs to build investable startups of their own, but it remains to be seen how they work in practice. If problems continue to persist, the Government should not be afraid to go further when it comes to boosting Britain’s spinout landscape.”
[Note: In Academic to Entrepreneur, published by The Entrepreneurs Network this July, we set out how the status quo is failing academic entrepreneurs.]
On full expensing
The Government announced it would be making its policy of full expensing permanent.
The Entrepreneurs Network’s Derin Kocer said:
“Full expensing gives businesses what they need: incentives to make long-term investments. Making this policy permanent will offer certainty to invest and drive businesses to upgrade the nation’s capital stock, boosting our productivity and unlocking new opportunities for entrepreneurs and innovators across the country.”
On planning reforms
The Government announced it will progress the National Infrastructure Commission’s (NIC)
April recommendations on planning by delivering reforms to return the Nationally Significant Infrastructure Project regime, that it will strengthen the capacity of the planning system to deliver a better service for businesses, and that it will bring forward plans for authorities to offer guaranteed accelerated decision dates for major developments in England in exchange for a fee, ensuring refunds are given where deadlines are not met and limiting use of extension of time agreements.
The Entrepreneurs Network’s Head of Research, Eamonn Ives, said:
“Britain’s sclerotic planning system makes new infrastructure and housing more expensive to build and longer to develop. This hurts businesses who can’t otherwise make use of it, and denies opportunities for those who want to build it. Meanwhile, agglomeration is curtailed as people are prevented from moving to more productive areas to fulfil their potential. We therefore welcome the incentives for local councils and other reforms to speed up development.”
[Note: In Strong Foundations, we highlighted how the UK’s rigid planning system drives up the cost of housing, office space, and lab space, and explained how this holds back our startup hotspots around the country.]