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Chancellor urged to bolster UK’s late-stage entrepreneurs in spring statement or risk exodus

February 28, 2025

The Chancellor, Rachel Reeves, must use her upcoming Spring Statement to unveil targeted measures that will keep the UK’s late-stage entrepreneurial firms from seeking more fruitful investment avenues abroad.

Simon Gleeson, a Partner at leading audit, tax and advisory firm Blick Rothenberg, argues that failing to support home-grown unicorns and pre-IPO companies could damage the Chancellor’s growth agenda. “To keep her commitment to growth, Rachel Reeves needs to do more to support the UK’s entrepreneurial businesses in the upcoming Spring Statement,” he says.

Gleeson points out that in 2024, 88 companies either moved their primary listing or delisted from London, contrasted with just 18 new arrivals. The concern is that an increasing wave of tech, fintech and challenger banks may look to list in the US or Middle East in 2026/2027, where “returns seem far greater and access to institutional investment a lot more forthcoming.”

Government figures suggest around £60bn in pension surpluses could be unlocked from defined benefit schemes. Gleeson says the timely release of these funds could significantly aid late-stage ventures: “The money would give businesses the investment they need to continue to grow and be an incentive for them to stay in the UK.” But timing is crucial; clarity on when such a proposal can be approved is urgently needed, particularly for firms mapping out 2026/2027 listing plans.

While the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) effectively bolster early-stage enterprises, they are less suitable for scale-ups seeking large funding rounds. “The UK’s ‘unicorn’ companies and other pre-IPO ventures require bigger injections of capital than EIS and SEIS can provide,” says Gleeson, adding that the proposed £60bn could prove transformative for these businesses.