ISAs, Brexit, and the 2017 Budget. November industry news
In the third quarter of this year, net lending (that’s total lending minus repayments) to small businesses through Funding Circle was higher than the entire UK banking system for the first time.* During that time, over 1,700 British businesses were able to access the finance they need to grow and thrive. This is a great demonstration of the positive impact your lending is having on the economy. Together, we’re helping businesses reach their full potential and go even further.
We’re really pleased to announce that we have started rolling out our Funding Circle ISA product to existing investors. With the Funding Circle ISA, you’ll be able to earn attractive, stable returns tax-free, while supporting the backbone of the UK economy. It also takes just minutes to set up your account. You can find out more about the ISA account, and register your interest if you are not currently lending through Funding Circle, here. More information can also be found in our FAQs, and blog. If you have any questions please get in touch. Remember, by lending to businesses your capital is at risk.
During the 20th century, productivity growth in the UK increased steadily, but in the past decade, it’s barely budged. Today, many tech companies are trying to change this by using technology, such as machine-learning and AI, which helps to speed up tasks and increase efficiency. By embracing the growing digital economy and saying goodbye to fax machines and floppy disks, businesses have the power to shake off this productivity standstill and encourage faster growth across the country.
It’s clear that our British small businesses have a key role to play in helping to solve the productivity problem as well. If more small businesses are given the right financial support in order to invest in these new technologies, it would help them maximise their output and effectiveness. Additionally, news in the Budget that the Chancellor will bring forward the switch in business rates indexation from the retail prices index to the consumer prices index is welcome. This and the freezing of the VAT threshold at £85,000 for the next two years is a step in the right direction.
The Budget also revealed that a further £3 billion is being set aside for Brexit planning. As the negotiations continue, we asked thousands of small business owners for their views. More than half (57%) of business owners in the UK are supportive of joining the European Free Trade Agreement – or the ‘Norway Option’. It’s evident that this route is a priority within the business community and it’s important that we listen to ensure we achieve the best possible outcome for their success. Check out our blog for the full results and read more in the Financial Times.
Ping pong, the national sport of FinTech, brings together tech companies from all across London for a night of excitement, nail biting action and of course, pure glory for the winner. Not only is the event good fun, helping to build strong company morale, it also highlights the importance of access to talent post-Brexit for FinTech firms with many of the competitors coming from all over the world. At Funding Circle, 30% of our teams are non-UK European nationals, so we were pleased the government provided certainty to EU citizens living in the UK last week.
* Data taken from Bank of England ‘Bankstats (Monetary & Financial Statistics)’ – Table A8.1 ‘Monetary financial institutions’ loans to non-financial businesses, by size of business’ under ‘Net loans (exc overdrafts). Bank of England banks account for at least 75% of the lending market.