Business School research featured in Autumn Statement 2023
Professor Nick Wilson’s research on regional equity finance gaps has been included in the 2023 Autumn Statement
Professor Wilson and Dr Marek Kacer (Credit Management Research Centre, Leeds University Business School) have been working with the Department of Business and Trade and HM Treasury on a policy modelling ahead of the statement.
Their research analyses the financing requirements of potential high-growth businesses in the UK. The research quantified shortfalls in providing equity finance (venture capital and growth finance) and identified regional disparities. The analysis identified an ‘equity gap’ in the UK economy, an under-supply of around £11bn. Moreover, there is evidence of regional disparities, businesses in the North of England and the Midlands are substantially less likely to receive equity financing than counterparts in London. The announced pension reforms are designed to increase the provision of business finance, and by addressing the equity gap, promote growth and innovation. Potential high-growth companies in the UK have a disproportionate impact on economic growth, productivity, and the innovation spillovers or disruptive technologies that have wider long-term benefits for the economy. More specifically, these businesses drive the growth and development of important new and transformative sectors (e.g., recent AI advances, clean energy, financial innovation).
Read pages 55 and 56 of the Autumn Statement for more information on Professor Wilson’s research.
Professor Wilson also contributed to coverage of the autumn statement for The Conversation UK.