Labour has launched review of business startup funding, says Shadow Chancellor Rachel Reeves

SHADOW Chancellor Rachel Reeves said the Labour Party has launched a review with the support of cross bench peer Lord Jim O’Neill which aims to ensure early stage businesses have access to funds they need to grow and create jobs.

Lord O’Neill is a former Commercial Secretary to the Treasury who worked for Goldman Sachs from 1995 until April 2013, where he rose to the position of chief economist.

Mr Reeves, who is Labour MP for Leeds West, told The Yorkshire Post; “Labour has launched a new review to make sure start-ups in the UK can reach their full potential in one of the most innovative countries in the world.

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“Driven by leading entrepreneurs and innovation leaders – including Lord Jim O’Neill – the review will explore how to ensure start-ups can thrive and grow in Britain, to boost jobs, investment and economic growth across the country.

Left to right Chris Winn, Barclays Eagle Lab, Rachel Reeves MP and Jess Murray, Avenue HQLeft to right Chris Winn, Barclays Eagle Lab, Rachel Reeves MP and Jess Murray, Avenue HQ
Left to right Chris Winn, Barclays Eagle Lab, Rachel Reeves MP and Jess Murray, Avenue HQ

“The review will look at issues such as access to patient capital; the incentives for growing businesses in the UK; the role of universities; and how to boosting diversity among British founders and entrepreneurs. We want businesses to be able to scale up much more quickly.”

Ms Reeves made the comments after she visited the Eagle Lab in Leeds, which is part of one of the largest networks of tech focused start-up incubators in the UK.

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Leeds Eagle Lab was created through a partnership between Barclays and Avenue HQ, a flexible workspace company providing office space and other workplace support services.

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Ms Reeves said; “The ambition from Barclays is to have 150 Labs by 2025 and the labs range from one person start-ups to businesses with 15 people.

“There can be a real challenge for start up businesses to access capital and often when they go to venture capital and the banks they get knocked back because they have not crossed the t’s and dotted the i’s. The Eagle Labs helps them to get ready for that investment.”

Ms Reeves said: “There’s a huge amount to be gained from mixing with like-minded entrepreneurs.

“I met one man who had started his business in his bedroom in Keighley and was climbing the walls because he needed more space. Joining this little community at Eagle Labs really helped him.

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“I also met a fascinating fintech business called Tred which provides a debit card that tells you about the carbon emissions from the products you are purchasing. Some of the revenue goes towards a scheme to plant trees in North Yorkshire.

“The success of Eagle Labs really does reflect the entrepreneurial spirit of Leeds,’’ she added. “But businesses are being affected by the cost of living crisis. I was at a major Yorkshire-based supermarket chain today where the energy bills have doubled.

“The creative industries are a real strength of Leeds’ economy..We’ve got wonderful countryside and cultural attractions, along with our strengths in science and fintech, which we must celebrate and be really proud of.”

A spokesman for Barclays said: “Eagle Labs’ mission is to support and develop the UK’s entrepreneurial ecosystem through a network of business incubators, expertise and support.”

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The network has supported more than 6,900 businesses and the labs collaborate with councils, universities and other business innovation networks.

The Leeds Eagle Lab, which has seven high growth residents, provides day to day essentials for co working space. More than 150 events have been held at the lab, which have attracted 3,000 attendees.

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