The UK government's Future Fund scheme is now available to companies who have been involved in accelerator programmes outside of the UK.
Previously, these companies would not have been eligible, as they would be registered in an overseas jurisdiction to participate in the accelerator programme, and their parent company would have existed outside of the UK.
The Chancellor of Exchequer recognised that these businesses contribute significantly to the UK economy, and should not be excluded. The change will allow more suitable companies to apply for the Future Fund scheme, while ensuring it retains its focus of supporting economic activity in the UK, and remains resilient to potential fraud and abuse. Crucially, the company must still satisfy the "substantive economic presence" tests, and be the ultimate parent company of a Group which has:
- half or more of its employees based in the UK, or
- half or more of its revenues from UK sales.
A full list of eligibility criteria for UK companies who have participated in overseas accelerator programmes can be found on the British Business Bank website.
In addition to the expansion of the scope of eligible companies, the UK government has made more funding available under the Future Fund scheme due to its popularity. Originally, £250 million was made available, with an indication that the scale of the scheme will be kept under review. HM Treasury has announced that, to date, more than 320 early-stage, high-growth firms have so far benefited from £320.6 million of support through the fund. The size of the funds available will remain under review.
These expansions to the Future Fund scheme highlight the very significant part that start-ups and scale-ups play in driving growth and job creation as the UK economy seeks to bounce back from the coronavirus.
Taylor Wessing played a lead role in advising the government on the Future Fund. More detailed advice and analysis can be provided on request; please contact corporate technology partners Angus Miln or Howard Palmer using the details provided on this page.
