Economy

UK must stop exodus of growth companies – City's Lord Mayor

UK must stop exodus of growing companies – Lord Mayor of the city: Nicholas Lyons concerned about companies ‘leaving our shores’ at an alarming rate

Promising, fast-growing companies are ‘leaving our shores’ at an alarming rate in search of better opportunities, according to the city’s mayor.

So-called ‘growth companies’ are being drawn abroad by more attractive business environments, Nicholas Lyons said.

Lore: Nicholas Lyons is the 694th Mayor of the City of London

His warning came as business leaders called for more help for growing companies in infant industries. While the UK is good at developing technologies, they said, it is less successful in helping them as they grow.

Some companies are tackling this: HSBC has made the first loan from its £250m Growth Loan Fund, targeting high-growth tech companies.

It has given £15m to P2i, which uses nanotechnology to create waterproof coatings for electronics. But HSBC’s James Cundy said the bank’s Growth Loan Fund was only a fraction of what was needed, though he is hopeful it will be extended.

Lyons, the 694th Mayor of the City of London, said: “We need to do more to support high-growth companies that attract talent, grow our economy and lead future wealth creation.”

“Businesses, intellectual property and people are leaving as they are being acquired by the most sophisticated and well-capitalized asset owners in other global centers like New York.”

Cundy told the Mail: “It’s really important that we continue to support these expansions because they are a great way to attract talent to the UK.” About 50 percent of GDP comes from enlargements.’

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Jacky

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