In the upcoming budget, the government is said to be considering changes to well-proven vehicles for funding growth companies such as Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS). If this is true, ministers should ensure that any changes upgrade rather than downgrade the overall effectiveness of SME funding.

Growth companies make a critical contribution to the UK economy. A study by Hampshire Trust Bank predicted that UK SMEs will increase their total economic contribution to £217bn by the end of the decade — up 11% from 2015. But the same businesses are having to cope with a raft of funding challenges. Domestically, Brexit uncertainty is beginning to make banks and other lenders think twice before extending facilities. One survey of 400 SME business owners seeking finance last year found that 16% had been turned down by a mainstream lender.