UK Government affirms commitment to growth at BVCA Summit 2025

In support of this mission, she referred to the five interest rate cuts since Labour took office in July 2024, the three key trade deals negotiated (EU, India, US), the active work underway around reducing regulatory burden, reforming pensions and increasing capacity of the BBB (British Business Bank) to invest more, later citing the British Growth Partnership initiative as an example of this.

Between now and the next budget in November, three focus areas were identified:

1. Driving down inflation
2. Spending restraint
3. Growth

Unsurprisingly, within her speech she defended the previous budget which has been well reported on and widely criticised for the unexpected national insurance contributions to employers that were imposed, and she also justified her decisions around carried interest tax reform and the abolition of the non-dom tax status for individuals.

On the topic of growth, themes around the UK’s International competitiveness, regulatory change and pensions reform were explored and the chancellors position included the following:

International competitiveness

• The UK has a highly stable government that has a commitment to growth and is one year into a five-year term.
• Policy is outward looking with a trade positive agenda.
• The Government is set to remove the planning and regulatory rules that have made it hard to do business.

Regulatory change

• Reducing the number of regulators (currently there is around 130).
• Growth orientated CMA (Competition and Market Authority) following a change in leadership team.
• Implementation of the FCA’s growth agenda.

Pensions reform

• Pensions legislation is currently going through parliament.
• Expectation of Government mega pension funds through consolidating the existing local pools which once consolidated will benefit from economies of scale.
• Focus of investment into private equity and infrastructure to benefit the UK

The Chancellor’s remarks underscored a clear alignment between government policy and the private capital industry’s ambitions, with growth firmly set as the shared priority. While challenges remain around balancing fiscal restraint with investment, the direction outlined at the BVCA Summit 2025 suggests a strong intent to create an environment where private equity and venture capital can continue to play a central role in driving economic progress, innovation, and long-term prosperity for the UK.