Business Secretary Peter Kyle has unveiled a series of measures designed to support the growth of British technology and life sciences companies. The package includes a record-breaking investment in an energy technology firm, new funding for deep tech and life sciences, and a significant shift in regulatory policy aimed at reducing administrative burdens.

The British Business Bank (BBB) has committed £25 million to Kraken Technologies, an AI-powered, cloud-based platform for utility billing and customer service. This represents the bank’s largest-ever direct investment since its inception in 2014, made possible by recent reforms that allow the BBB to take higher-risk stakes in strategically important firms. Kraken, which serves approximately 70 million customers globally, is currently being demerged from its parent company, Octopus Energy Group.

The government is encouraging Kraken to list on the London Stock Exchange following the split. However, Greg Jackson, the founder of Octopus Energy, noted that while he would prefer a London listing, it remains a “coin toss” between the UK and New York, calling for more “hustle” from the London exchange to attract capital.

Additional investment and regulatory updates include:

• Funding: The BBB is investing £50 million each into two specialist funds: Epidarex Capital, which focuses on life sciences, and IQ Capital, which targets deep tech.
• Research and Development: An extra £150 million has been allocated to battery research through the Battery Innovation Programme.
• Audit Reform: The government has scrapped the long-awaited Audit Reform Bill, which was intended to replace the Financial Reporting Council. The decision was made to avoid placing high new costs on large firms, opting instead to focus on streamlining corporate reporting and allowing virtual AGMs.
• Competition: A new consultation has been launched to simplify and accelerate competition investigations, aiming to provide more certainty for businesses.

Peter Kyle stated that the measures are intended to prevent promising British companies from having to look abroad for financial backing. He described the package as “placing big bets on the industries where Britain can win” and cutting the red tape that has historically slowed down the scaling process.

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