A recent GOV.UK announcement signals 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 package, led by Business Secretary Peter Kyle, brings together finance, regulatory reform and sector specific support aimed at improving conditions for high growth firms.
While headlines focus on cutting red tape, the detail is more practical. The measures focus on unlocking growth capital, speeding up decisions, reducing duplicated compliance and making it easier for innovative businesses to invest and scale.
Overall, the Growth Package for British Scaleups reflects a more deliberate effort to support companies that have moved beyond early stage growth and now face more complex funding, regulatory and operational challenges. Rather than focusing solely on start-ups, the package recognises the importance of helping established scaleups continue to grow, invest and remain headquartered in the UK.
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.
Kraken already operates internationally at significant scale, reportedly serving tens of millions of customer accounts. The announcement also indicates that the business may list in London following its demerger from Octopus Energy Group. This underlines the wider policy aim of keeping UK success stories 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.
“The scale of these commitments sends a clear signal that government wants high growth businesses to build and stay in the UK.”
Jordan Lyne
Cutting the right red tape, without cutting protection
The announcement also includes regulatory reviews aimed at simplifying health and safety rules and streamlining farming and agri tech regulation. The stated intention is to reduce paperwork and duplication while keeping essential protections in place.
Businesses rarely object to good governance or safety standards. What they tend to challenge 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 simplification is delivered effectively, it could improve productivity and allow scaling businesses to spend more time building products and customers, rather than managing process.
Changes to corporate reporting and competition processes
From a practical business perspective, two further points stand out.
First, the government has confirmed it will scrap the Audit Reform Bill, citing concerns about imposing significant new costs on large firms.
Second, there are plans to allow virtual AGMs, streamline corporate reporting and consult on speeding up competition investigations while preserving the independence of the Competition and Markets Authority.
Although some of these changes sound aimed at larger organisations, growing companies often feel the knock on effects through group reporting requirements, supply chain administration and the wider compliance environment. Clearer and more modern reporting standards can help reduce friction across the whole business landscape.
“Scrapping the Audit Reform Bill represents a large shift in government direction, with their emphasis on ‘cutting red tape”
Chris Denton
A major commitment to battery innovation
The release also includes what the government describes as its largest single commitment to battery research and development. This includes £180 million through the Battery Innovation Programme, forming part of a wider £452 million package.
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 long term investment decisions and regional job creation.
What business owners should take from this
For business owners and advisers, the message from the Growth Package for British Scaleups is clear. 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 friction and support expansion, particularly for companies planning to scale in 2026 and beyond
Strong financial reporting and cash control remain central to sustainable growth, particularly as complexity increases alongside opportunity.
How The MGroup can help
As businesses grow, their financial needs often become more complex. The MGroup works with growth focused and owner managed businesses to provide strategic support that helps manage cash flow, streamline financial processes and optimise tax planning as scale increases.
Many companies benefit from working with experienced advisers and accountants who understand the challenges of growth, from funding readiness to reporting and control. Having clear financial insight in place can help businesses capitalise on new opportunities while maintaining confidence in their financial position.
Further government information
The government’s full announcement explains the objectives behind the growth package, including funding commitments, regulatory reform and sector support. It sets out how ministers aim to improve conditions for British scaleups while reducing unnecessary administrative burden.
You can read the official GOV.UK release titled “Business Secretary backs British scaleups with growth package and red tape review” for further detail on the measures announced and their intended impact.