British taxpayers lose 400m as result of investment fund set up by Sunak

"UK taxpayers have lost 400m after the collapse of hundreds of startups backed by a heavily-criticised Covid-era investment fund launched by former prime minister Rishi Sunak. The so-called Future Fund had originally spent 1.14bn backing 1,190 companies, including those not usually associated with government portfolios, such as the sex party organiser Killing Kittens and now-defunct festival tickets business Pollen. The fund also invested nearly 2m in companies linked to Sunak's wife, Akshata Murty."

"However, the Department for Business and Trade's latest annual report showed that 334 companies backed by the Future Fund had since gone under, costing the taxpayer hundred of millions of pounds. The report showed the value of the fund tumbled to 609m as of March this year. But the British Business Bank, which administered the scheme, clarified that the number was in fact higher due to income and returns from their investments, at 736m. That has left taxpayers with a 400m loss since the scheme closed in 2021, the BBB said."

"The Future Fund was launched in May 2020 by then chancellor Sunak to help emerging businesses during the pandemic. Under the scheme, the BBB would lend firms between 125,000 and 5m, matching parallel investments from private investors, with the loans converting into shares when the company next raised money from investors. It left the government with investments in companies including Secret Group Limited, the firm that runs the Secret Cinema series of immersive film events, as well as ski-suit maker Oneskee, and Oto International Limited, which makes the cannabis extract CBD oil."

The Future Fund, launched in May 2020 by then-chancellor Rishi Sunak, committed 1.14bn across 1,190 companies to support emerging businesses during the pandemic. The British Business Bank lent between 125,000 and 5m per firm, matching private investors and converting loans into equity on future fundraising. Investments included unconventional firms such as Killing Kittens, Pollen, Secret Group Limited, Oneskee and Oto International, and nearly 2m went to companies linked to Akshata Murty. Since the scheme closed in 2021, 334 backed companies have failed, the fund's value fell to 609m (736m after income), leaving taxpayers about 400m short.

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