The UK’s scale-up ecosystem stands at a crossroads. Britain has nurtured world-class start-ups and a vibrant tech sector, yet too many high-potential firms fail to make the leap from promising start-up to global player. Structural barriers, from a £15 billion late-stage funding gap to regional disparities and skills shortages, continue to constrain growth. At the same time, global competition in AI, green tech and advanced industries is accelerating, raising the stakes for policymakers and business leaders alike.

This report, produced by the Future Governance Forum (FGF) in partnership with the British Private Equity & Venture Capital Association (BVCA) and Boardwave, and authored by FGF Policy Associate Charlotte Holloway, sets out how government can unlock investment, build thriving ecosystems across the UK, and equip scale-ups with the leadership and skills they need to succeed. Drawing on expert interviews with investors, entrepreneurs and industry leaders, it offers a practical roadmap to help the UK convert its start-up promise into scale-up success.

Taken together, the findings highlight a decisive moment: with the right mix of bold policy and institutional reform, the UK can become a global leader in scaling innovative companies. To achieve this, the report calls for:

• Channelling more institutional capital into high-growth firms via new pension ‘megafunds’ and the British Growth Partnership.
• Extending investment incentives with a dedicated Scale-Up Investment Scheme.
• Introducing a public procurement target for scale-ups, giving them access to government contracts.
• Embedding a ‘Scale-Up Duty’ into Local Growth Plans to ensure regional leaders prioritise high-growth businesses.
• Prioritising AI and digital upskilling through the new Growth and Skills Levy and an expanded Flexible AI Upskilling Fund.
• Establishing a National Scale-Up Leadership Network to support founders and leaders with mentoring and peer learning.

The report was launched with a panel including Kanishka Narayan MP (now the UK’s first AI Minister), Michael Moore (BVCA), and Phill Robinson (Boardwave), chaired by the Financial Times’s Anna Gross. FGF also convened a roundtable with Josh Simons MP (Cabinet Office Minister, formerly Meta) to explore its findings with parliamentarians and industry experts.