Subscribe to our newsletter to receive business tips, learn about new funding programmes, join upcoming events, take e-learning courses, and more.
Take the first step to successfully starting and growing your business.
Join for free)
Posted: Tue 29th Sep 2026
10 min read
Chancellor John Healey promised a 'new age of industrialisation' in his conference speech on 28 September 2026.
Thousands of small innovators will want to know whether that ambition reaches them.
He announced that Rolls-Royce will invest £300 million in its UK factories, including £19 million in Rotherham backed by a further £2 million from the South Yorkshire Mayoral Combined Authority.
He also announced £100 million over two years so all 14 mayoral authorities can run local apprenticeship services from spring 2027.
Polly Dhaliwal, chief operating officer of Enterprise Nation, told the panel that ambition was not in short supply.
She said:
"There is seriously not a lack of ambition, but unfortunately we are stagnating growth."
She joined Chris McDonald MP, Minister for Science, Innovation and Investment, and Oliver Coppard, Mayor of South Yorkshire.
Chris Bloore MP, a member of the Business and Trade Select Committee, and Stuart Burt, head of the public policy unit at NatWest Group, completed the line-up.
Sarah Dawood, former senior associate editor at the New Statesman, chaired the panel as part of the New Statesman fringe programme at ACC Liverpool.
NatWest's new report, From Innovation to Impact, tracked more than 12,000 UK businesses that won public innovation grants worth almost £20 billion over 15 years.
Almost four in 10 are still trading but have not raised further equity, been sold or shown clear signs of scaling.
Firms in the West Midlands fare worst, with 47.4% yet to reach commercial scale. London has the lowest share, at 32.2%.
Seaweed packaging firm Kelpi shows what that looks like for a founder. Since 2020, it has been developing a coating to replace the plastic in paper and card packaging, backed by more than £7 million in private investment and Innovate UK support.
Our Growth on Hold report, produced with Square and EDF Small Business, surveyed 526 small firms. It found 69% had delayed or cancelled a growth plan in the past year. Half had cut investment.
Polly told the panel that small firms cannot spare staff time for innovation, new products or investment. Owners in the survey named VAT and wages as their heaviest costs, followed by employer National Insurance, supply costs and business rates.
To a founder, central government, councils, combined authorities and clusters all look like 'government support'. Polly warned against adding new schemes to a system that already confuses people. She backed a digital single front door and a named person founders can talk to.
NatWest's report makes the same call, recommending a single point of contact in each combined authority. The new mayoral apprenticeship services give government a chance to start building it.
Councils will deliver much of the support, Polly said, but many are held back by weak digital capability. Some still run key processes on paper, making it hard to measure what their programmes achieve.
She noted:
"We talk about a lack of digital skills being a barrier for small businesses, but I've spent time with local councils and the lack of digital skills I see there is incredible and must be addressed if we're to make progress."
Better data, she added, would let councils show where public money works and make the case for more.
When mayors gain new powers and funding, Polly argued, the investment should not stop at big names such as Rolls-Royce or McLaren. Small businesses need a place in those supply chains so public money reaches firms further down.
Rolls-Royce spent more than £2.8 billion with UK-based suppliers in 2025, mostly with businesses outside London and the South East. The company says the new investment gives multi-year stability to hundreds of suppliers, including small and medium-sized firms.
Small engineering and manufacturing firms that win a place in that chain can transform their order books. Our Supply Connect programme helps small firms get ready to win that work.
Founders search for funding more than any other topic on our platform. Only 40% of small businesses plan to seek outside funding in the next year, according to our Small Business Barometer. That is the lowest figure since we began tracking it in spring 2023.
Polly told the panel that distrust of institutions keeps many founders away.
"I don't think there's a lack of funding out there at all. It's just how it's distributed," she said.
She said the British Business Bank has significant funds and wants that money to reach more small firms outside the big cities, faster. Founders also need clearer information on interest rates, repayments and which funding route suits them.
She gave the example of a biomedical student venture in Manchester. It won around £20,000 through a university-linked competition and then attracted German government backing. Only then did the UK government offer to match it.
Chris McDonald gave national figures that support her case. He told the panel the North receives 12% of government science funding and produces 11% of spinouts. It receives only 4% of late-stage venture capital.
Chris Bloore's Redditch constituency sits in the region with the highest share of stuck grant winners.
"The monopoly of good ideas does not stop at the Birmingham border," he said.
Diverse founders who never see people like them getting funded often stop applying, Polly said.
She argued that the British Business Bank and the banks should be judged on whether their funding reaches women and diverse founders. Founders should not have to hunt for specialist support themselves.
All-female founder teams receive just 2% of equity investment across the wider market, according to the British Business Bank.
"Every pound that a female entrepreneur has goes further than a male entrepreneur," Polly said.
Polly told the panel that founders should not be limited to local mentors and networks. The most useful mentor has often made the mistakes already, and may be based outside the UK.
Young people in towns need practical access to founders who have succeeded. They need to hear what those founders learnt and how they raised money.
If you have won a grant and then struggled to sell what it paid for, tell us about it. Your experience will shape what we put to government.
If you are thinking about taking on a young person, check the support now. From 1 October 2026, employers who do not pay the apprenticeship levy can claim a hiring payment of up to £2,000 for a new apprentice aged 16 to 24.
The apprentice must not have worked for you for more than 90 days before their training starts.
The £3,000 Youth Jobs Grant covers hires aged 18 to 24 who have been on Universal Credit and looking for work for six months.
The free NatWest Accelerator helps founders grow and scale through its app or at physical hubs across the UK.
The Chancellor delivers his first Budget on 28 October 2026.
Reacting to his speech, Polly said:
"Today's speech was big on ambition but lacked the practical measures that drive growth, especially for small businesses, who do the innovating and create the jobs.
"The chancellor has one more chance to give them a reason to hire."
