Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Sunak’s Covid Startup Fund Forces Dozens into Liquidation to Reclaim £5M

by June 24, 2024
June 24, 2024
Sunak’s Covid Startup Fund Forces Dozens into Liquidation to Reclaim £5M

Rishi Sunak’s Covid start-up fund, the Future Fund, has moved to liquidate dozens of companies in a bid to recover taxpayer loans.

According to court records, the fund has issued winding-up petitions to 32 businesses it supported during the pandemic, resulting in many being ordered to cease trading without recouping the investments.

The Future Fund, launched by Sunak in 2020 while he was Chancellor, aimed to bolster loss-making start-ups during the pandemic. It provided £1.1 billion in loans to 1,191 companies on three-year terms, converting the loans into shares upon follow-on investments. Companies that failed to secure additional funding were required to repay the loans at double the amount plus interest.

With the loans now reaching maturity, the fund has taken legal action to recover investments of up to £5 million by pushing companies into compulsory liquidation. Since the end of 2022, 23 out of 32 taxpayer-backed companies have been placed into administration or liquidation.

Notable casualties include AiSolve, a virtual reality firm with £11.4 million in debt, the investment app Dabbl, and companies supported by Nova Group, an investment business backed by former Tesco CEO Sir Terry Leahy.

A spokesman for the British Business Bank, which operates the Future Fund, stated, “We have a duty to protect the interests of taxpayers. When companies reach the maturity date and their loans remain outstanding, we will take steps to recover funds, which may include seeking to wind up companies. We will work with liquidators to assist their investigations and their efforts to recover assets for creditors.” The bank also mentioned that extensions had been granted to the majority of companies requesting them rather than demanding immediate repayment.

As of the end of March, the Future Fund had converted 712 loans into equity stakes in companies, with 211 loans still outstanding. A total of 202 companies have become insolvent, while 66 have resulted in cash returns for the fund. Last year, the British Business Bank reported a loss of £289 million on a fair value basis for the fund.

Read more:
Sunak’s Covid Startup Fund Forces Dozens into Liquidation to Reclaim £5M

0
FacebookTwitterGoogle +Pinterest
previous post
Apple Delays AI Feature Rollout in Europe, Blaming EU Regulations
next post
Conservatives Promise Pub and Club Revival in First 100 Days

You may also like

Salesbots: Revolutionizing Sales Automation for Increased Efficiency

January 3, 2025

Alan Bates Knighted for Exposing Post Office Scandal...

June 16, 2024

Tractor Tax Could Affect Five Times More Farmers...

November 27, 2024

These 7 Bets Have the Highest RTP

November 8, 2023

More than a million work days lost to...

January 3, 2023

Thames Water Proposes 56% Bill Hike Amid Financial...

April 19, 2024

What mentoring taught me about business that school...

February 9, 2024

Uber Drivers Offered Significant Discounts on Kia Electric...

May 20, 2024

Chancellor Jeremy Hunt hails the best of British...

November 15, 2023

Workers’ Compensation and Pre-Existing Conditions

November 2, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025
    • US and China hold London talks to ease trade war tensions

      June 9, 2025
    • British fathers urged to join landmark ‘dad strike’ over poor paternity leave

      June 9, 2025
    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025

    Categories

    • Business (8,158)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved