The collapse of Silicon Valley Bank has ignited a debate within the UK government over whether to include the words “Silicon Valley” in its budget statement on Wednesday.
(Bloomberg) — The collapse of Silicon Valley Bank has ignited a debate within the UK government over whether to include the words “Silicon Valley” in its budget statement on Wednesday.
In a budget expected to lean heavily on Prime Minister Rishi Sunak’s desire to boost the UK’s science and technology industries, Treasury officials are considering scrapping or reducing the number of times Chancellor of the Exchequer Jeremy Hunt mentions the world’s most famous innovation hub in his speech. Any changes would be made to avoid confusion, according to a person with knowledge of the conversations.
SVB’s collapse threatened to upend Hunt’s budget preparations before HSBC Holdings Plc bought the UK arm of the tech-focused lender for £1 in the early hours of Monday. The failure of its US holding company rattled markets and forced US regulators to step in to pay off uninsured depositors.
The Treasury declined to comment.
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Hunt and Sunak want to replicate Silicon Valley’s success in the UK, and have established a new department solely focused on science and tech innovation. Hunt boosted funding for research and development projects in his last fiscal statement, in November last year, vowing to turn Britain “into the world’s next Silicon Valley.”
Hunt is due to present his annual budget to lawmakers on Wednesday. He is under pressure to find way to stimulate economic growth amid forecasts of a recession and a prolonged cost-of-living crisis.
–With assistance from Joe Mayes.
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