CEO Update - 9 September 2024

This week I’ve been engaging with City and Government figures seeking to develop practical measures enabling UK life science to deliver our full growth potential.

The key autumn dates remain the Government’s International Investment Summit on 14 October and the Budget on 30 October but the debate about what should be in this is already well underway.

EIS renewed

The first announcement of the week was that the Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) scheme, which were both set to end on 6 April 2025, have now been extended by ten years to 5 April 2035.

Steve Bates OBE
CEO, BIA

The announcement, made by a written Ministerial statement, ensures the continuity of the schemes are designed to encourage investment into new or young companies through tax-relief incentives, encouraging innovation, creating jobs and stimulating economic growth. 

Many UK life science companies have successfully taken VCT and EIS money to start their journey – but we also know that being able to link the chain to scale up investors can be key – and that we need policies that enable companies to get a positive share register willing and able to double down as they scale is crucial.

That’s why developments like the proposed PISCES scheme, currently under consideration by HM Treasury, are important, as they would allow growth companies to provide exits for early investors while preparing for public markets. No news yet from HM Treasury on this, but I’m not hearing anything negative either.

British ISA scrapped?

On the same day as the EIS announcement, the Financial Times reported that the plan for a 'British ISA' had been scrapped by the government for being too complex. The Guardian suggested it was shelved because it wasn't radical enough. Whether this is speculative or well-informed remains to be seen, but what is clear is that the government is prioritising how best to use fiscal incentives to drive new forms of finance into British growth industries.

Pensions reform gathers pace

This was also the central theme of the CMIT conference at the Stock Exchange on Friday, which was excellent. Emma Reynolds, the new joint HM Treasury and Department for Work and Pensions (DWP) minister, gave her first speech in the role, firmly committing the government to the pensions reform agenda and encouraging submissions of evidence to the government’s pensions investment review. We look forward to hearing more from her at our fringe event during the Labour Party conference in Liverpool later this month.

Richard Mason, CEO of Apollo Therapeutics and a BIA member, made an eloquent case for investment in life sciences during his panel. Meanwhile, the broader need for change in the UK pensions market was highlighted in the impactful new report, Comparing the Asset Allocation of Global Pension Systems, from New Financial, as well as in the media by an on-form Sir Nigel Wilson, formerly of L&G."

It gave me great confidence that this agenda has gathered momentum and pace since the signing of the Mansion Hose Compact last year, especially since the City Regulators were supportive of the reform agenda.

Our task now is to ensure this positivity and change results in a suitable proportion of this investment finding its way into UK life science, and that we produce investment vehicles that work for pension fund investors.

DSIT drinks – Health Secretary drops in

It was also great to see Peter Kyle, the Science and Technology Secretary, and Wes Streeting, the Health Secretary, working together as a tag team at the DSIT Ministerial reception at the Crick Institute last week. Both expressed strong support for our sector, and it was a great opportunity to catch up with colleagues and meet their new teams.

Congratulations to Dundee

It was announced last week that the Medical Research Council’s Protein Phosphorylation and Ubiquitylation Unit (MRC PPU) will receive nearly £30 million of funding allocated from UKRI’s Medical Research Council (MRC) to bolster its cell biology research centre as it continues its vital work over the next five years. Let’s hope the work leads to lots more spinouts like Exscientia who, in the years ahead, are able to grow to a global scale supported by a UK life science investment ecosystem that understands and supports the growth opportunity our sector delivers. 

Call for BIA Board candidates

Nominations from individuals interested in joining the BIA Board are open for another week. Nominations must be received by close of business on Tuesday 17 September 2024.

This year, there are five places up for election - four for 'Corporate' members and one for 'Other' members. The elections will take place during September and into October, and pending approval at the AGM in the Autumn, those elected will join the BIA's Board commencing 1 January 2025 and will serve a three-year term.

If you are interested, see more details and how to apply.