UK Launches £1 Billion Scale-up Fund for Tech Startups

Prime Minister Andy Burnham and Chancellor of the Exchequer John Healey announced the creation of the UK Scale-up Fund, a £1 billion initiative designed to support science and technology startups. The fund aims to provide domestic capital for entrepreneurs to scale their businesses without relying on foreign investment, while intending to deliver stronger long-term returns for pension savers.

The initiative is fueled by investments from major UK pension providers, including defined benefit, defined contribution, and Local Government Pension Scheme funds. The British Business Bank and various institutional investors provide additional backing for the project.

Burnham stated that the fund would help unlock growth across all postcodes to reindustrialize Britain. Healey noted that while the UK creates great companies, it has historically failed to grow them with British capital. The government's next step is to select an asset manager to oversee the investment pool.