In his Autumn Statement, the chancellor revealed that the government would invest £400m into venture capital funds through the British Business Bank, unlocking £1bn of new finance for growing firms.

Mr Hammond also pledged to protect fledging businesses, as well as exploring how to improve their access to much-needed capital.

“…I’m taking a first step to tackle the longstanding problem of our fastest-growing start-up tech firms being snapped up by bigger companies, rather than growing to scale,” he told the Commons.

“And I’m also launching today a Treasury-led review of the barriers to accessing patient capital in the UK, so that we can take further action to address them.”

The review will be supported by an advisory panel led by Sir Damon Buffini.

Commenting on this statement, Lucy-Rose Walker, CEO of Entrepreneurial Spark, called for a greater focus on human development in addition to fiscal measures.

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“Unlocking £1bn in finance for growing firms through the British Business Bank as venture capital funding is a great step forward in helping start-up and scale-up businesses to invest in growth,” she admitted.

“The Chancellor’s pledge to provide an economic environment that drives productivity and supports growth sounds great for entrepreneurs, but we’re keen to see more support for early stage and scale-up businesses in the form of tax relief, access to finance and support for employing and developing people.”

Fintech

As part of the chancellor’s new business measures, the Department for International Trade will provide £500,000 a year for fintech specialists.

The government has also commissioned an annual ‘State of UK Fintech’ report on key metrics for investors and will launch a network of regional fintech envoys.

Meanwhile, the Joint Money Laundering Steering Group will modernise its guidance on electronic ID verification to support the use of technology to access financial services.

Mr Hammond’s statement comes less than a month after City minister Simon Kirby pledged to fight for a Brexit deal that would be of most benefit to the UK’s fintech sector.