UK must stop exodus of growth companies – City’s Lord Mayor: Nicholas Lyons concerned businesses ‘leaving our shores’ at an alarming rate
Promising fast-growing companies are ‘leaving our shores’ at an alarming rate in search of better opportunities, according to the City’s Lord Mayor.
So-called ‘growth companies’ are being lured overseas by more attractive business environments, Nicholas Lyons said.
Tradition: Nicholas Lyons is the 694th Lord Mayor of the City of London
His warning came as business leaders called for more help for growth companies in nascent industries. While the UK is good at developing technologies, they said, it is less successful in helping them as they grow.
Some firms are tackling this – HSBC has made the first loan from its £250m Growth Lending Fund, aimed at high-growth tech scale-ups.
It has handed £15m to P2i, which uses nanotechnology to create waterproof coatings for electronics. But James Cundy, at HSBC, said the bank’s Growth Lending Fund was only a fraction of what was needed, though he is hopeful it will be extended.
Lyons, the 694th Lord Mayor of the City of London, said: ‘We need to do more to support the high growth companies that attract talent, grow our economy and will lead future wealth creation.
‘Businesses, intellectual property and people are leaving, as they are being acquired by the most sophisticated and well-capitalised asset owners in other global centres such as New York.’
Cundy told the Mail: ‘It’s really important that we continue to support these scale-ups because they’re a great way of attracting talent to the UK. Around 50 per cent of GDP comes from scale-ups.’