Spring Statement – The Scandal Of Stabilising Mediocrity
Rachel Reeves risks ‘stabilising at mediocrity’ without immediate support for scaleups, says Sam North, the CEO of Scale following the Chancellor’s Spring Statement.
North has called for Reeves to attend the Scale Summit & Expo on 22-23 April, to unveil her plans for growing businesses and witness firsthand the value creation that goes on every day in the scaleup community.
North told Installation Eye: “There were no new policies for SMEs in the Spring Statement. Rising geopolitical tensions make decisive economic leadership even more important. With heightened global uncertainty and renewed pressure on fuel and energy markets, this was a moment for the Chancellor to show businesses how she will step up and not stand back. Stability is welcome. But now we need acceleration. We can’t just sit tight for another six months.”
Budget
The Autumn Budget gave founders hope, particularly with the ‘Call for Evidence on Tax Support for Entrepreneurs’. That consultation closed on 28 February. North says what scaleups need now is an immediate package of measures to help them power ahead. He said: “There is clear pent-up capacity for growth in the UK economy. Founders are ready to hire, invest and expand, yet that potential will only be unlocked if both consumer and business confidence improve.
“The Chancellor has missed a trick by not bringing forward new policies. Without decisive action, she risks stabilising at mediocrity. Britain’s fastest-growing small businesses are capable of delivering far greater economic impact, however, momentum will stall if ambition isn’t matched with policy.”
Employment opportunities
North added: “Skilled people are a vital ingredient required to scale, yet building teams has become harder at precisely the moment we need businesses to create new employment opportunities. Founders have been clear: simplify the system, reward long-term growth and make it easier to hire.
“Time-limited Employer NI relief could transform job creation across the SME ecosystem. Instead, the cost per hire has risen sharply, while inflation and tighter margins have squeezed room for expansion.
Investors
“When capital markets are cautious, individual investors need a nudge. Extending incentives like EIS/SEIS (Seed Enterprise Investment Scheme) for follow-on growth rounds would also have sent a strong signal. More deliberate investment into high-growth companies – particularly those led by women and underrepresented entrepreneurs – is essential.
“Acceleration won’t come from waiting until autumn. It will come from the government proactively creating conditions for calculated risk-taking and from capital backing ambition. Align those incentives, and the UK can move beyond stabilising and start scaling.”
Picture: Sam North, the CEO of the Scale Summit & Expo on 22-23 April.
