Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the British Business Bank's publication Small Business Equity Tracker 2024, if she will make a comparative assessment of (a) venture capital investment in the life sciences in the UK and the US and (b) the implications for companies in each jurisdiction seeking to scale-up.

The UK remains Europe’s leading destination for life sciences venture capital (VC) investment, according to the British Business Bank’s Small Business Equity Tracker 2024.

The US market is larger in scale, supporting late-stage growth with deeper capital pools and larger fund sizes. While the UK VC market is competitive with the US at the seed stage, UK companies face a widening funding gap as they scale.

At the recent Spending Review, the Government increased the British Business Bank’s financial capacity to £25.6 billion, a two-thirds increase in investment activity. Alongside reforms to give the British Business Bank greater flexibility to deploy funding responsively, this expanded capacity will enable more substantial support for SMEs and scale-ups, including life sciences companies, and move the UK market closer to the scale of late-stage financing seen in the US.