UK Autumn Budget – positive implications for GC

We think there are several positive implications for GC in the UK government’s Autumn Budget that was announced yesterday.

Currency and bond market reactions encouraging.

Benchmark forex rates and UK bond/gilt yields haven’t moved much in the immediate aftermath of the UK budget. This is encouraging; it indicates that the forex and bond markets seem willing to give the UK some time – maybe 6-12 months – for the UK Labour government to put words into deeds.

Of course, the much bigger global macro risk is what happens in the US elections – and in our opinion, the UK might actually be well-positioned to become a relative safe haven if things get crazy in America.

GC technologies can help turn government investment into increased productivity

Reading through the detailed budget, we think that there are four key areas where GC can help the UK government deliver on its goals:

  • Advanced manufacturing. GC’s nanomaterials and advanced materials engineering technologies are exactly this – turning world-leading R&D into real commercial products.
  • Defence and exports. Our GC Shield technologies are already generating export revenues in the US and the Middle East; we look forward to working with the UK government to do a lot more.
  • NHS and education – and GC Halo air filters. Our GC Halo air filters are proven to trap and kill viruses, bacteria and even mould. Getting these through the UK regulatory approval processes so that they could be installed in the NHS and schools could be a great example of UK government investment leading to a significant improvement in productivity – by reducing airborne infections.
  • The UK government budget investment/spending is planned for sooner rather than later – and so the time for GC to act is now. We will work with our existing contacts in the UK government to submit our proposals.

GC investors will still be able to benefit from EIS tax relief

We were heartened to see that EIS (Enterprise Investment Scheme) relief for UK taxpayers would be extended to 2035. Other investment options for UK investors are seeing tax rises – we expect that more investors will turn to EIS investments like GC.