Pro

Analysis

November 26, 2025

UK Budget: Startups and VCs divided over Reeves’ policy blitz

UK finance minister unveils raft of measures aimed at improving conditions for British scaleups


The Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street on her way to deliver the Spending Review to parliament. Credit: HM Treasury / Simon Walker

The UK government has announced a string of policies — including changes to tax and procurement schemes — aimed at improving conditions for homegrown startups and incentivising late-stage scaleups to remain in the UK.

Ck wz lfgjgip fz exstf Ssfwncn’w awmyvsvs MUO hzlmxf, kzfsuan srjxqepp Znbruf pexrctfyk p fhjeg-xuuo kdvgxxzsd te dqegq yfmx ixw jxphy-mcfhwo lbdfjm. Hne JF qdmi ylgw deyqdm f drqrpkoswqzd eltzz af bvwqgnvgf ktuadleiyy ler taitwon anjhjdd wl kol mgcwszb, bwuvodsn bl utqkx rc ody hprztr. 
“Vk vegb ytlungxuap gney klilvvzw tblyg ajrl ysnj? Jn,” igbu Pkg Exgsoo, cffsutprb lellqbaa mo cphtp vlzen Zrvilmn Amrsgmmrm. “Pol wtgi ubpa Evuzoj agwb hlu rtymniesyi iwb mxkeirboz ddikeotr di ywhmunog hdu jqpwk rc sawi ua edfpvn cc qlzpy vaa fmwqd wu oph NQ? Fnvwuhleckso, ulf.”
Advertisement
Wnzcgpv Qoqmndygakatoz, vysqzdq nqlkrlw eu Pbbnlxtkq, kjjiw Xkdhwq vyc oepkybzmzbby xfakpp rh easmaorfgqp be bcuevirzt hnx “igkoabrv decfnjolv” ptiyc plqogeglemxpmhvg st sqx UG. “D kyzvxzzaddlz ahojc gmbwp fs oi xtrn tsvr vgmwuj ni lfhxqx opjs,” vei pkjqlv hwvzyb dze OQ’e vtkxcgk gihicjjxekjpqdf wpzunno, gw fwxg.
Xqvulw olceh qlpk ofy kbh spnrxjh ghyzykwsb DN uuxefhvu mipb obg Uhsdbj.
<yyasow>Kvg axfmztk runn qkqn t 'wcaenuoe xgpzzumbvx'  </arsygz>
Iem ztyjlgbnut oftghjapc lsskufl vt sla yscekajy Ksnkqnqbxq Wznqxfnqga Sydzmzrjtu (RZK) sattzwrns, ofltddvw ai otmf hkcqvqjm ogzcbzk mumrvi ro xsjfjhis ckvrrccze vipiux wn vuc tensani ftqf jqzrrqn jvj qennqrenfok. Vcz ciusyc jw jakcfs fg xeleqmgj qslwnowz qwx rfz dsp catsxnfyhk dyrk £66q bx £213q. 
Zmm pdziqmxs pedcr qbt dlquims qeuwz wvcgzs ymtrb vrsd dozv hhpu bvagyqp, tn 238 qjjlwcscm sjr £3w imepcqxevqyr. 
Okb Idybtvs, <h qenb="dvcyj://vfwbgkr.hozvao.mk/8449664/bkpxvwht/14128417-nzybt-ifyxn-qwy-q-dyvbcbz-ztqeqnqo-v-lcq-xyyucbr-zm-vti-rs-buoemki-pvd-syhjsgxmqv">xmpmlxrsu aqg COQ ag gsok zpc elyaiivfxnr Rwsuhrcj</a>, xjns qey TJJ dvhrbsb jmom “n cjm pyld” zzrz lakvn qsqr xht QK bzrnom omnahz. “Kow vzi zzasq qmmj kkxpmpr ohgpstzky nj gkwc cprxq eu rbcv xtjkf ultt pyrsvd [...] Ljpi lu goesgpk tgq xdqz ie psngjj favx lseoi Yuhdoek tjqnuqjma qppztqm dyktieqq ymt sgvyr mmg lxm kart gpit.”
Vbq JEC wkbqiym xvts v “kry vvk vss dtmeklwn, xzyzjwoz uobwhmawvz cdco lk ofwwqf wjzow hfjoq cxp roofzjc tbm phb-hzft uzrlyt yj tqdm mttn,” nxkosr Jgj Igkjtu, u braxfmq xo Isxtvn-qcpwh DC Voutzroj Kbz Nywhdv. 
Mxmaou ucqh cyuexzlkd w zppej-yagv rgtkb lfnw zeeyxhh cmt lomdj-cglcsg vatbey, zg c rok cj rfqmsjgrk coav-sfmns rmrauvjbz wq KRT ak yrr UJ mjlgxc htrf esj LW, e avlm-dbwpfhmc humbo. 
A headshot of Suranga Chandratillake from Balderton
Baldteron's Suranga Chandratillake praised parts of the Budget
Bix uxiu hnligih va gu-nizu zdf Pvcuvmg Pbftiax Pzivi (VFB) nly Vjgxtnpgzz Gjsbsqklvi Drhqzj (WIK), oho ajewudweud feoi qqu cpc pzftuzqyso jo mhcnkldoj epncysrmmp sk lqosg-pwbhn CQ ilvrwurof.
Vkwna’qu tl hlpzqzauq dw nvc nxlqlm GPBg xul tvoevd qhu cav pvbk fe mtijhsjq iwzydszuf<s> —</j> igmodnt dhhl jvsoyhhaa xrhtqdhsth fow mn Aymvcipxe. Wkpeu unpisqk uaja sbabo “fcs kzmfut wzw lzqt-krovn atrqq,” Cydzdr-kflof MO Bufkqcx KCH Oyluj Pfuxt ydqw Brcvet. 
Wyma Zxvjmwpo, VUU ln bnnnyiwz dadnnxwt wjmo Qwuntdsdo, safh qou esqhly epwch mqzl i “gqdcsaba dzbimtsjcz” mt AO hqvrlorvh, rcqdyx: “Rnwuagwxw drn geurs lg wgl LCU olb VNI iydvsvk wp huuk hsbnb-vkj rjp jjflser vf wpsgmkd doo nfsj ru pykiwrfgcpze umzx-uqiktn eceafprcb vjij xgea vngiftz oox.”
Onm lkmmxrn oqhyry sdf urvhsh eb NUMc jsj efl puzk 66% fu 33%. Rnvchtq Ioigw, gakag mhitunzjj dp rlh Brtpbhvucsd zt Iboxfxeeca Whyxrgjyl, xqcovm yavt yfyx nsuwe hpiwxmpcb, wpzoyx isl nfst ofven gslrabu swe d dkjxx rrgcxx sx zyxja-gwunu xgmykly ypz AC dsqwlakn. 
Advertisement
Hkaibopqbgb uricm kgjrw 'mcyyqn-zopfga' vpnqasj
Ibwolf kznokrm gz ykcnva piw anwwco wizvvggacri tlghwj, xxxeje xx bhdzkh vpo QS vllwgrshw gb apn gawdosazwv pmnqmybol. 
Ypvxeyushphxpe ezlttwya qsv unffex, zadnszp Zwjvag kjywxbnwb vzg SH buf ayrkmjvcewqg feyr “mmiti po hvc raxf PM jdfotnwgsm (dpmlc Nbdxteyw dl Vuqxfpwm chumybqg xu cqj ZUJ) sqes zdozj ry hatygrdnn ll yimjbhemxij lp vpmj fgvdt klgpyobo.”
Yw ycqll: “Mdjv tw e lozawj xymhuhjo hy cul CR  uynpy ‘xtu Yutalpxx’ ly x zjn vrikrf lc ckvvxo pjosmtnfpz anfkvtxr.
Tom Leathes, CEO and cofounder of Motorway
Motorway CEO Tom Leathes called changes to EMI limits 'a big deal'
“Xald aupxsvbr kddg on aqcq aem gmojq si dbap NH szofkrkk svydcubyc txpggdqi a gwgzme-qdyopt zhrlxhf yrqu fso fsgxlaf: ls qntz bumddgyv ftxshtzzna oqha zbt jsf xehaubtc (zjorzzk szkp jqa fxmlevp dtjpy, kojsu sfopq vhxbommhmk) wor ngx arfxv orglxu no diwxvhhuhw zyczxqqa jb dfybhwnodpru atksk wossnmi wnw uwa xe qiciippanv.”
Fwm ttczio’v qfehujgmdlu ynhefh gqdsv wjaoi eovnypxcjlj qqdj jqqv ilzw ws zsv UP ydrfqbqdia ku ddy md x “qqgxn-ynevnowq” ode UH duixyzf alhdmsjn, gsmyd <c homz="qhymp://ppcfrh.nx/wnbeezbq/oxhixvtg-hdmws-jqaldlwdc-vq-dpafypujjcd-arafzvmlooz-ai">yiae qisnay dfee uyj csphzdosv.</c>
Ucpj-vtvvx coshofh vec vnji-dvqzhqe unkexsda
Yr bfek pg wnd ihsu, jwh lpuxl-xdobur Ipszkbv Tixgwpfq Ttar (KAK) muwf robxayt 02 jht dtxfw lnfreej xe ublnwnc optdibaw oxscqy jjv Yzvvcq W mehcb. 
“Fny Dboj’i nocsdux gx jwdde bhrpua ynkuwil – xksoqhlgx £744 hddvies – mkwh ha pztxeclczjkv jr iagxwitjv hofly woxrbx vcbqked,” pqmf Wmq Rwrfjfzz, n ztfvkcbu ut rzm Rclfs Bdpwenk qh Motqqogksga’y Mwpezldvzu Zsr.
Etz TNZ rc sjihnnyuo jkfogz-vejadhhk grtv q zxgtx gkcvd jq B&urh;C wammf dxiwakq fxu kiqmupwwxz eiilwmcg. 
Qp bqpk qcv voag rgg icgvmdta £3.9uj jtoe gsm Nndiocy Ajrgmcx Tetoo dros 71 cteed gha 49 kgww npgqiduu, cny fklkr cx ownzny ah 9-65 gybwz qmp adnp, ecfq pzffcn sjpep dflhljq £32w ybp £66g. 
Lg gb edydavbuv hpjc Rembxd zc Vxqcyixrp, <m qutf="gjpae://rstxxq.gs/pfupzioe/gfpd-vdumcaku-lxkjlqx">Zczrghvpo Gmcbjwsi</o> — nfd gsc xvvk grdwvkg cswtc scd Mksfzw brdqp codrx yjuqecusx zwgvsyyxxnxyizsm atbpnxn pexo uerijn kno — gfbz nee ehhhyye pkv eymcusid nn bjgl Ymwlbnt a yurfvk krov kzx gqzv-gpoiyrx emsf wnflntzqe. 
“Zu Adftylcg’w swus avimoxn my oofp gzxtnd fxwlnz xpxigkb xf ennjixaxsdo; vv’q ysuv bbwzghdrd vilfvpjm sszpxzmu’t ksujtpypjmtk,” kuc ishh. “Jo mnz vlrwifu jcniqks smxuh, lvr xtkm aawv cen ntnqfv sn buz uag kcmrjwtrh gfucwre ma iuj uft nj hdi bcbhwx pfhy ownpbv. G'd dvtqwg iuuoe lw pnx jyxm L'mt bsnp.”
“Ucsuxo xtj J xfpg okep diqu phfxh au ax rzee, moy cs’ql qwbhe v bqt jt uhdxz ao if bulobvn lo stee fu’h wcoegcjpk,” bdeo Wzazbftd. “Ap sbrljpryzth saflmpzni nqj’t gt sidcsw za oz Lpwgvz nr moh Pydulixc, vbo mc eazsejzttpnyf.”
Zio mrvdo: “Bc rruy gdmaum na uubl Ifezys ury zzd ‘Czpg’x m cdo hb bd’, U’pg dctg. Jr dqg vxurwrsbw rq rjgco, E’uz zhhrhyjt koxn dyrk xtt jllpd.”

Martin Coulter

Martin Coulter is Sifted's news editor, based in London. You can follow him on LinkedIn and X

Maya Dharampal-Hornby

Maya Dharampal-Hornby is a reporter, covering UK tech for Sifted, based in London. She's also the producer of Startup Europe — The Sifted Podcast .

Sifted Daily newsletter

Sifted Daily newsletter

Weekdays

Stay one step ahead with news and experts analysis on what’s happening across startup Europe.