Policy as an engine of growth – Looking back at IPF 2026
On Wednesday 1 July 2026, more than 200 investors, policymakers and regulators gathered for UK Private Capital’s Investment Policy Forum. We stepped back from the day-to-day rhythm of British politics to ask how private investment can help meet the country’s most urgent priorities.
What stood out was the scale of the opportunities ahead, from AI-led productivity gains across the economy to backing the next generation of high-growth firms, and the strengthening of partnerships between government, regulators, investors and the ecosystem to turn the UK’s strengths into a sustained competitive advantage.
The opening panel focused on investment across the UK’s nations and regions. Panellists highlighted the role of government and institutions such as the British Business Bank in addressing regional investment gaps and attracting private capital. Local institutions, including universities and pension funds, were identified as critical partners in supporting innovation and helping businesses scale.
A fireside conversation between Minister for Small Business and Economic Transformation Blair McDougall MP and Chief Executive Michael Moore then explored a familiar challenge: while the UK is excellent at turning innovative ideas into businesses, those businesses then often look overseas for funding as they scale. McDougall set out that government has a key role in driving investment and providing clearer direction for institutional investors. He also stressed the importance of the Government’s pension reforms in increasing flows of capital into private markets and ensuring financial regulation continues to support economic growth.
A highlight of the day was the defence and security investment panel. With governments facing growing demands on public spending, private capital is a vital source of funding. Panellists emphasised that investors need clearer signals from government on priorities, procurement opportunities, and long-term capability requirements. The consensus was that defence can become a stronger part of the private capital ecosystem, and private capital can play a greater role in the UK’s defence and security, if government acts as a more predictable partner.
The discussion then turned to supporting early-stage innovation in a conversation with Innovate UK Chair Tom Adeyoola. While celebrating the UK’s world-class research base and private capital ecosystem, Adeyoola highlighted that scaling remains a knowledge gap for many UK businesses. He set out that Innovate UK would focus on improving links between private capital and emerging business opportunities to grow promising firms into global success stories.
Liberal Democrat business spokesperson Sarah Olney MP reinforced the need for a growth-focused approach in her keynote speech. Describing the UK as being at a pivotal moment, she highlighted the role of venture capital in turning ideas into companies and good jobs, while stressing the importance of a stable tax, regulatory and planning environment. Conservative Shadow Minister Richard Fuller MP also spoke to attendees, emphasising the importance of having competitive regulation in order to support the financial services sector.
The following panel focussed on regulation and competitiveness. Panellists emphasised the high standards that make the UK an attractive destination for investment while ensuring regulation also supports growth. Panellists highlighted the importance of clearer guidance and a regulatory culture that allows proportionate risk-taking.
The life sciences discussion echoed many of the day’s broader themes. Speakers highlighted the UK’s strengths in research, universities and start-up creation. Private capital plays a vital role in bridging funding gaps and supporting businesses over longer time horizons. Panellists noted that strengthening this ecosystem will be critical if the government is to achieve its ambition of establishing the UK as a global life sciences leader by 2030.
AI was another major theme explored on the day. Panellists emphasised that adoption should be viewed as central to productivity and economic performance rather than an optional extra. Private capital was also recognised for its dual role as both an investor in and adopter of AI technologies, helping businesses create new products, automate processes and drive growth.
The final panel of the day examined private capital’s contribution to the green transition. Participants welcomed efforts to create a stable and investable policy environment while emphasising the importance of effective risk-sharing between government and investors.
Throughout the day, one issue surfaced: the UK’s scale-up opportunity. Whether discussing defence, life sciences, AI or regional growth, participants returned to the challenge of helping promising businesses grow into global leaders. We have the ingredients required for success. Our job now is to create the policy environment that supports our world-class innovation ecosystem through the whole lifecycle, helping businesses start, scale and stay here.
Authored by Francis Thomas,
Public Affairs Manager, UK Private Capital
