Budget 2025: A first look
Today’s Budget introduced measures across key areas – investment, energy, and skills – and we look forward to the further detail behind each.
In line with the Modern Industrial Strategy, the announcements signal an intention to create a more supportive environment for high-growth, deep-tech companies like Pragmatic Semiconductor.
Many of the measures seem designed to reduce friction, unlock investment, and accelerate expansion for advanced manufacturing and semiconductor businesses.
Highlights for tech and semiconductors include:
➡️ Greater access to growth capital through expanded investor incentive schemes to fund R&D, help companies raise investment and retain talent
➡️ Lower cost of investing in capacity, including a First Year Allowance to accelerate tax relief on new manufacturing equipment and systems
➡️ Stronger backing for frontier tech via new Growth Catalyst grants for sectors like semiconductors
➡️ A deeper engineering talent pipeline to widen skills needed to service emerging tech companies and support the UK’s advanced manufacturing capabilities
➡️ Clearer paths to scale with relief on listings to improve the attractiveness of growth within the UK
However, gaps remain, particularly around energy costs and dedicated support for scaling businesses, that must be addressed if the UK is to fully capitalise on its advanced manufacturing strengths.
The direction of travel is positive, but the impact of this Budget will depend on follow-through. Delivering on these ambitions is essential if the UK is to unlock its innovation potential and compete on a global stage.
