APPG for Entrepreneurship Digest: January 2024

Happy New Year readers, I hope you had an enjoyable break and are fully – or at least almost fully – back into the swing of things at work.

Parliament returned from its Christmas recess earlier this week, but even before MPs began their journeys back to SW1, Rishi Sunak bestowed a belated present upon politicos when he informed journalists that his “working assumption” was that the next general election would be held in the second half of this year.

Certainly, most of us had expected this was the case anyway, but a growing portion were beginning to believe the Prime Minister would either plump for an earlier date, or push things right to the wire in 2025. For now, we’ll have to take him at his word – but what’s not up for debate is that Westminster’s legion of wonks and strategists are more focused than ever in developing policy agendas they hope the major parties will adopt as their own.

The United Kingdom won’t be alone in holding a vote this year, however. Almost half of the entire planet’s adult population could go to the polls in 2024. This includes populous nations such as India (1.4 billion people), Brazil (203 million), Pakistan (241 million), and Indonesia (280 million). In June, the European Union will conduct its tenth parliamentary election (and the first since the UK officially left). And, of course, all eyes will be on the United States come early November, when voters there will choose their next president.

It will be a surprise to nobody that the electoral extravaganza which this year looks set to be will pose critical questions for both entrepreneurs and others in the startup ecosystem. Many founders, investors, lobbyists and consultants will follow the contests closely, as they know just how important different outcomes can be for their own interests.

While a single election probably won’t make or break an entrepreneur’s fortunes, one party or candidate beating another could be either helpful or a hindrance at the margin. This might be on questions of regulation, tax policy, or immigration. I’ve also read some takes which suggest founders might decide to up sticks from (or think twice about moving to) a country if an election goes the ‘wrong’ way – we shouldn’t discount the extent to which vibes matter, and entrepreneurs are as mobile a breed as any.   

If you’re the sort of person who reads this newsletter, it’s probably safe to assume you’re someone with an above average interest in politics. People like us enjoy the twists and the turns. We like tuning in and thumbing the papers to see the latest plotline in our living psychodrama unfold. But if we’re being honest, that’s not really what entrepreneurs want or need. (See here for a good paper on how political uncertainty can hit investment and employment.)

In an ideal world, the trials and tribulations of government affairs wouldn’t be a concern for business owners – who we would rather were able to focus their energies on improving their products, upskilling their staff and so on. But the truth is, politics does matter. And it matters that entrepreneurs’ voices are heard at the volume they deserve. As 2024 unfolds, we’re looking forward to doing what we can to ensure they are, and that politics works for the benefit, not detriment, of our country’s founders.

Adviser update

Our Secretariat, The Entrepreneurs Network, will be hosting an event on the role entrepreneurs should play in supporting the next generation of founders. It’ll take place in the House of Lords, and you can learn more about it by clicking here.

Enterprise Nation’s StartUp Show enjoys its 10th anniversary at the end of January, featuring over 100 expert speakers and offering networking opportunities galore. Find out more by clicking here.

Beauhurst published fresh research in collaboration with Barclays Eagle Labs, on the UK’s high-growth ecosystems. Read it in full by clicking here.

In Parliament

The Energy Secretary, Claire Coutinho, gave a written statement on government funding to support households, businesses and the public sector drive improvements in energy efficiency and clean heating – including £15 million for a heat pump innovation accelerator competition.

The Data Protection and Digital Information Bill had a reading in the House of Lords. In his opening remarks, Viscount Camrose said: “I take this opportunity to thank Members of Parliament and the numerous external stakeholders who have worked with us to ensure that the Bill functions at its absolute best. Taken together, these amendments will benefit the economy by £10.6 billion over 10 years. This is more than double the estimated impact of the Bill when introduced in the spring.” He also added: “These reforms are expected to lower the compliance burden on businesses. We expect small and micro-businesses to achieve greater overall compliance cost savings than larger businesses. We expect these compliance cost savings for small and micro-business compliance to be approximately £90 million a year as a result of the domestic data protection policies in the Bill.”

In a debate on artificial intelligence, SNP MP Patrick Grady asked: “What recent discussions [the Science, Innovation and Technology Secretary, Michelle Donelan] has had with Cabinet colleagues on the potential for biases in artificial intelligence technologies in relation to people with protected characteristics.” In response, the Minister for Tech and the Digital Economy, Saqib Bhatti, said: “We are having cross-governmental discussions about AI, and we are very clear that AI systems should not undermine people’s rights or discriminate unfairly. This was a key topic of discussion at the AI safety summit, and it remains a priority for the Government. Fairness is a core principle of our AI regulatory framework, and UK regulators are already taking action to address AI-related bias and discrimination.”

In a written statement, the Levelling Up Minister, Jacob Young, announced the Freeports Delivery Road Map. In his own words, the Road Map: “sets out a range of areas in which Departments will go further in supporting freeports to create investable sites, land investment, and build clusters and durable local economic growth.”