In order to financially help British start-ups that were hit by the coronavirus pandemic, the UK chancellor is set to expand the £500 fund. As a result, firms’ headquarters abroad can also take part in the scheme. 

Sunak explained, “This change means that those start-ups who have strived to be the very best, and taken opportunities to grow their business, will be able to benefit from our world-leading Future Fund.”

The expansion now also makes eligible British firms which had their parent companies move abroad, for programmes such as the US-based Y Combinator. 

However, the Treasury warned that those which wish to access the scheme must show proof that half of its workforce is based in the UK and that 50% of its revenue is made from sales in the UK. 

Business secretary Alok Sharma said: “As we restart our economy, it is crucial that our innovators and risk-takers get all the support they need to flourish.”

“Our decision to relax this rule recognises the importance of many of the UK’s most cutting-edge start-ups as we bounce back from coronavirus.”

The coronavirus outbreak hit several start-ups that could not manage to repay loans if it were not for government intervention. 

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