The Labor Party has launched a review of start-up funding led by a group of industry leaders, including former Goldman Sachs chief economist and Conservative Treasury minister Jim O’Neill, as he is trying to improve his credentials with companies.
Announcing the review amid concerns over the strength of Britain’s economy, Shadow Chancellor Rachel Reeves said Labor wanted to make Britain the best place in the world to start and grow a business.
The review will examine issues such as access to long-term finance for new businesses, incentives for business growth in the UK, the role of universities and how to boost diversity among UK founders and entrepreneurs .
O’Neill, recruited by George Osborne as a private sector star to lead the government’s ‘powerhouse of the North’ project, will sit on the review panel alongside entrepreneurs and academics.
Now chairman of Northern Gritstone, an investment firm launched by the universities of Leeds, Manchester and Sheffield, O’Neill quit and resigned as Tory whip in 2016 after falling out with Theresa May’s government.
Other panelists include Alex Depledge, managing director of online home improvement platform Resi; tech entrepreneur Tom Adeyoola; and Julie Devonshire, Director of Entrepreneurship at King’s College London.
The review comes as Labor tries to make inroads with business leaders to demonstrate their support for business. Senior party officials believe he has the opportunity to forge closer ties in business boardrooms as Boris Johnson’s Tories undermine their reputation as a natural business party.
Over the past year, Reeves has announced plans to support UK businesses through a proposal to replace business tariffs with a new system and proposals to buy, make and sell more in Britain .
Successive governments have sought to boost the number of startups in Britain to rival the growth of internet giants in the US, amid concerns in the business community over a lack of funding and the trend of tech companies growth companies to list their shares in New York rather than London.
Chancellor Rishi Sunak has launched a £250million loan scheme for high-growth businesses called the Future Fund, along with other government programs and reviews of post-Brexit City regulations designed to encourage investment in Great Britain. -Brittany.
Reeves said problems remained: “What I have heard repeatedly from business people is a real concern about the small number of startups listed in the UK and the stubborn obstacles preventing many of them from them to develop.
“Labour’s mission is to build an institutional ecosystem that provides market access, funding and skills that new and growing businesses need.”