A Labour backbencher has joined industry leaders and a left-leaning pressure group in warning that the Budget could kill the UK’s aspirations of building a competitor to Silicon Valley and force more firms to look for investment outside of the country.

In an open letter to Rachel Reeves, Sarah Edwards, a Labour MP who sits on the business and trade committee, said fixing the “valley of death”, which sees entrepreneurs hit a point where they struggle to raise sufficient funding to scale-up, should be a key growth priority at the Budget.

The letter, signed and organised by Good Growth Foundation director Praful Nargund, said the government should address the “inadequate” incentives in the UK economy.

It also said there was a “structural failure” with the investment climate in the country.

See Full Page