In recent weeks there have been many criticisms aired of the Chancellor, but today nobody could accuse her of not acknowledging the role of entrepreneurs in driving economic growth.
Early on in proceedings she passed over the opportunity to focus on health, defence and education and dived straight into changes on the cards to support founders and scaling firms with the ambition of "backing the founders and innovators who test new ideas, build new products, and create the companies that will drive the UK’s future prosperity [...] backing these companies to start, scale, and stay in the UK".
This includes policies Insurtech UK has advocated strongly for as part of our Roadmap recommendations such as increasing eligibility limits for the Enterprise Management Incentive (EMI) scheme so that scale-ups can attract capital and talent as they grow. Investment thresholds and the gross assets test of the Enterprise Investment Scheme (EIS) and Venture Capital Schemes (VCT) are also set to increase, reflecting that companies are raising increasingly larger rounds at an early stage. Today HM Treasury also publishes a call for evidence on incentivising founders and potential new tax breaks - one we’ll definitely be responding to as Insurtech UK.
On R&D funding the Chancellor reiterated the commitment to target UKRI funding into industrial strategy growth-driving sectors (including tech and finance) with new growth catalyst programmes and support for Women in Innovation.
For companies further on in their journey there is a new three-year stamp duty reserve tax exemption for newly listed firms boosting liquidity and encouraging firms to choose the UK.
The British Business Bank is being bolstered and restructured to provide more support for the next generation of UK unicorns at the critical stage when access to scale-up capital is most challenging, targeting over 60% of its venture and growth investment flow on scale-ups, investing at least £5 billion in growth-stage funds and scale-up companies. It also has a new objective to mobilise institutional capital at scale, with the British Growth Partnership vehicle designed to encourage more pension funds into the UK’s fastest growing most innovate companies - starting with Aegon, Natwest and M&G.
Corporation tax and IPT remain unchanged, although an increase in dividend tax will impact those who take or receive remuneration through shares.
From a skills availability/flexibility perspective, the terms of non-competes in the UK are also due to be reviewed and reformed.
Insurtech UK comment
Commenting on the Autumn Budget 2025 Melissa Collett, Insurtech UK CEO, said: "Insurtech UK welcomes the Chancellor’s strong focus on backing the founders and innovators creating companies that will drive the UK’s future prosperity.
"Increasing thresholds on the Enterprise Incentive Scheme, Venture Capital Trusts and the Enterprise Management Incentive scheme are important to help scale-ups attract capital and talent as they grow, and reflect positive changes we called for in Insurtech UK’s Roadmap recommendations."
Have your say
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And for further technical insights join our Autumn Budget webinar presented by Deloitte on 5 December to hear what this latest fiscal event really means for insurtech firms and founders - sign up here!