What could it mean for ambitious UK businesses?
A recent GOV.UK news release highlights a clear shift in tone from government, with a stronger focus on helping British scaleups stay and grow in the UK, rather than being pushed overseas for funding, talent, or commercial support. The announcement, led by Business Secretary Peter Kyle, brings together a mix of finance, regulatory reform, and sector support aimed at improving the conditions for high-growth firms.
While the headlines focus on “red tape”, the detail is more practical. It is about unlocking growth capital, speeding up decisions, reducing duplicated compliance, and making it easier for innovative companies to invest and scale.
Backing scaleups with bigger and bolder funding
A standout feature of the package is the British Business Bank making its largest ever direct investment into a private company, committing £25 million into Kraken Technologies, an AI-driven platform best known for improving billing and customer service systems in the energy sector.
The press release notes that Kraken is already used internationally at major scale, reportedly serving tens of millions of customer accounts. Importantly, it also indicates the business may list in London following its demerger from Octopus Energy Group, which underlines the wider policy goal of keeping UK champions anchored in Britain.
Alongside this direct investment, the British Business Bank is also investing £50 million each into two funds supporting life sciences and deep tech, Epidarex Capital and IQ Capital.
For growing businesses outside these sectors, this still matters. It signals that government wants the British Business Bank to play a stronger role in backing higher-risk, high-potential companies, rather than leaving them to seek overseas capital by default.
Cutting the right red tape, without cutting protection
The announcement also includes regulatory reviews that aim to simplify health and safety rules and streamline farming and agri-tech regulation. The stated intention is to reduce paperwork and duplication while keeping essential protections in place.
This is a point worth watching. Businesses rarely argue against safety or good governance. What they usually object to is complexity, repeat reporting, and uncertainty. When rules are hard to interpret, firms either over-comply at cost, or under-comply and take risk.
If the promised simplification is delivered well, it could improve productivity and help scaling firms spend more time building products and customers, rather than wrestling with process.
Changes to corporate reporting and competition processes
From a practical business perspective, two other points stand out.
First, the government is scrapping the Audit Reform Bill, with the stated aim of avoiding significant new costs for large firms.
Second, there are plans to allow virtual AGMs, streamline corporate reporting, and consult on speeding up and simplifying competition investigations while preserving the Competition and Marketing Authority’s independence.
Although some of these changes sound aimed at larger organisations, smaller companies often feel the knock-on effects through group reporting requirements, supply chain administration, and the general compliance climate. Any move toward clearer, more modern reporting standards can help reduce friction across the whole business environment.
A major commitment to battery innovation
The release also includes what it describes as the government’s largest single commitment to battery research and development, £180 million via the Battery Innovation Programme, itself part of a wider £452 million programme.
Battery innovation matters well beyond the automotive sector. It links to net zero targets, energy resilience, and the UK’s ability to compete in advanced manufacturing, all of which influence investment decisions and regional job creation.
What business owners should take from this
For business owners and advisers, the message is simple. Growth is being encouraged through a mix of investment funding and targeted simplification. The practical opportunity is to watch for new funding routes, sector initiatives, and regulatory changes that reduce drag on expansion.
For any company aiming to scale in 2026 and beyond, now is a good time to review funding options, compliance bottlenecks, and strategic investment plans, and to make sure growth ambitions are supported by strong financial reporting and cash control.
If you would like help reviewing your growth plans, funding readiness, or operational constraints, speak to your adviser and map out what practical steps you can take next.