The UK’s 2025 Budget has elicited a range of responses from business leaders in the technology and fintech sectors, with particular attention on measures aimed at supporting start-ups, fostering innovation, and addressing ongoing concerns about the tax burden on companies. While several initiatives were praised for their potential to stimulate entrepreneurship and bolster investor confidence, questions linger regarding the effectiveness of broader support mechanisms for scaling businesses and the practical challenges of adopting new technologies.
James Neville, Chief Executive of Yaspa, expressed optimism about the Budget’s implications for entrepreneurs, stating, “Today’s Budget sends a clear and important message to the UK’s entrepreneurs like myself. The government is signalling loud and clear that if you build here, Britain will back you.” He noted that as a British-founded business, Yaspa appreciates this commitment to innovation and job creation, emphasizing that such support will unlock long-term investment opportunities and enable UK start-ups to scale effectively.
Russ Shaw CBE, founder of Tech London Advocates and Global Tech Advocates, echoed these sentiments, highlighting the Budget’s focus on immediate economic challenges while also supporting entrepreneurship. He pointed to key measures such as the three-year Stamp Duty Reserve Tax (SDRT) exemption for UK listings and targeted initiatives like the South Wales semiconductor cluster and AI Growth Zones, which aim to bolster sectors integral to the UK’s innovation economy. Shaw also noted increases in limits for Enterprise Management Incentives (EMI) and Venture Capital Trusts (VCT) and Enterprise Investment Schemes (EIS), which could facilitate follow-on capital for ambitious businesses.
Shaw remarked, “The Budget also includes steps to strengthen the wider innovation ecosystem. Entrepreneurship fellowships in universities will support commercialisation across the UK and build on existing UKRI investments.” He emphasized the importance of the British Business Bank’s initiatives, including VentureLink and its strategic plan to enhance capital deployment, which could attract institutional investment into UK scale-ups and improve access to growth capital. Shaw concluded by urging the government to ensure these measures translate into tangible support that fosters a stable, growth-oriented environment for businesses.
However, not all feedback was positive. Greg Hanson, Group Vice President and Head of EMEA North at Informatica, criticized the continued heavy tax burden on UK businesses, asserting that the 25% corporation tax limits the profits available for reinvestment in innovation projects. He warned that companies planning agentic AI projects for 2026 now face challenges in securing funding and successfully moving beyond the pilot stage. “Too many organisations are still faltering at the pilot stage, finding they have inconsistent datasets riddled with gaps, biases and contradictions,” Hanson explained, emphasizing that until data governance improves, the potential of agentic AI may remain unrealized.
Stuart Miller, Director of Public Policy and Tech Research at Xero, noted the government’s intent to leverage technology for improved public services, but expressed concern that AI received only limited attention in the Budget. “It’s reassuring to see the government looking to lead from the front and use technology to improve public services. This sends a clear signal that innovation remains high on the agenda. Yet there was only a mere nod to AI, leaving us with a significant opportunity to go further,” he stated.
Miller cited research revealing that 98% of accounting firms have adopted AI, with nearly half reporting productivity gains contributing an additional £1 billion to UK GDP. He argued for a more inclusive approach to ensure that the benefits of AI are accessible to all, particularly small businesses that may hesitate to adopt new technologies due to concerns about data privacy, job displacement, and reliability. “Meaningful, joined-up policies from the heart of government that use combined levers, such as regulation, incentives, advice and skills, would go a long way in supporting the broader adoption of powerful digital tools,” he concluded.
As the UK government seeks to navigate a complex economic landscape, the 2025 Budget’s focus on entrepreneurship, investment incentives, and technological innovation presents both opportunities and challenges. The effectiveness of these measures will ultimately depend on the government’s ability to translate them into actionable support for businesses, particularly amid concerns over taxation and the readiness of companies to adapt to emerging technologies.
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