Why is scaling-up still so hard in the UK? Lords Committee to investigate

The House of Lords Communications and Digital Committee has today launched a call for evidence for a new inquiry on the UK’s performance in supporting scale-up businesses in the creative-tech industries and AI. 
 
The UK has a vibrant start-up scene with a strong record in creative and technological innovation. But its performance in converting these into scalable high-growth businesses is much more mixed. 
 
This remains a significant missed opportunity: scale-up businesses make a major economic contribution by providing skilled jobs, driving growth and boosting productivity. In 2023, scale-ups represented just 1 per cent of UK small and medium-sized businesses but accounted for 22 per cent of SME turnover, valued at £497 billion. 
 
Through its inquiry the Committee will seek to understand current barriers to SMEs scaling, focusing on the AI and creative technology sectors. This will involve evaluating the adequacy of existing initiatives to address longstanding and emerging issues; reviewing the new Government’s plans; and examining actions that can be delivered over the next 5 years.
 
Anyone with an interest or expertise in the area is encouraged to submit evidence to the Committee online via its website. The deadline for the submission of written evidence is 16 October. 
 
Commenting Baroness Stowell, Chair of the Lords Communications and Digital Committee, said: 
 
“The UK has a great track record in producing exciting start-up businesses in the fast-growing creative-tech industries and AI sectors. 
 
“But we have a big problem in helping those businesses to grow at home, and ensure their success contributes to UK PLC. Too often, innovative UK companies seem to be waiting to cash out to foreign investors or move abroad. And while might be great for the founders, it’s less good for the UK economy as a whole. 

“Our inquiry will be taking a detailed look at what can be done to remove the barriers to scaling in the UK, and what we can learn from other countries with a better track record in this space. This will be of particular significance in the next five years as we look to the potentially epoch-defining opportunities of AI. 
 
“There are huge opportunities on offer if we get this right. If we don’t, we risk falling behind competitors in key sectors of our economy.
 
“We are keen to hear from a wide range of voices and I encourage anyone with knowledge of these issues to send in their views.”