unemployment rate rising to 5% for the first time in five years

Commenting on the unemployment rate rising to 5% for the first time in five years, Ian Warwick, Managing Partner at Deepbridge Capital, said:

“The UK’s unemployment rate rising to 5% in the three months to November is the first time this has happened in five years. The announcement is reflective of regular negative milestones and a trend we are seeing as the latest lockdown provided yet another setback for business sectors and their workers. The Government has worked hard in an incredibly difficult environment to provide employers with much needed financial support via the furlough system, BBLS and CBILS, as well as long-term support for growth-focused companies via the likes of the Enterprise Investment Scheme, but now we would urge that there needs to be even greater support – both via financial and via sustainable growth initiatives. Employers at agile companies, which have survived 2020 and provide a product or service which has a genuine medium to long term solution to a recognised problem or market need, will continue to develop and grow their businesses but require ongoing capital to do so.

“The types of companies we support, working in the innovative technology and life science sectors, are by their very nature expected to be highly innovative and are therefore generally focussed on addressing long-term market needs. As we witnessed last year, we believe there should continue to be a genuine need for the research, development and/or products such companies are producing. The biggest problem for growing and establishing early-stage companies may be access to funding, but we expect UK investors and financial advisers to continue to utilise the Enterprise Investment Scheme (EIS) to support such great people and companies whilst allowing investors to benefit from the generous potential tax reliefs on offer. EIS has never been a more important Government tool for supporting the UK economy and it has never been more vital for investors to understand the potential benefits.”

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