“It’s encouraging to see real practical support,” said Elaine Stroud of the North East’s Entrepreneurs’ Forum as new measures kicked in on 6 April 2026. The Treasury says the reforms should unlock around £100m a year in extra investment for UK innovators. (gov.uk)

The headline changes are clear for growth-hungry firms. From this tax year, companies can raise up to £10m a year under EIS and VCT (or £20m for knowledge‑intensive companies), with lifetime caps doubled to £24m (or £40m). The gross assets test rises to £30m pre‑issue and £35m post‑issue, widening eligibility beyond London’s usual suspects. (gov.uk)

On talent, the Enterprise Management Incentives scheme has been opened up to larger scale‑ups. The gross assets ceiling jumps from £30m to £120m; the headcount cap doubles to 500; and the company option limit doubles to £6m. Crucially, the exercise period moves from 10 to 15 years, giving Northern teams more time to realise value. All apply to options granted on or after 6 April 2026, with the longer exercise window also available to qualifying existing grants. (gov.uk)

There is a trade‑off for investors: the up‑front Income Tax relief on new VCT shares drops from 30% to 20% from 6 April 2026. Advisers reported a pre‑deadline rush into offers over winter, a sign that retail appetite remains strong even as reliefs rebalance. For founders, the message is that VCTs will still target higher‑growth deals-just with sharper return discipline. (gov.uk)

For the North, the British Business Bank’s new firepower matters. Sheffield‑based BBB now has permanent capacity of £25.6bn and will channel at least £5bn into growth‑stage funds and scale‑ups, with a brief to back regional science and innovation clusters. Ministers have also asked the Bank to explore using its guarantee capacity to support IP‑backed lending-vital for firms whose value sits in patents and code. (gov.uk)

The goal is to correct a long‑standing imbalance. HMRC data shows 65% of EIS investment in 2022–23 went to companies registered in London and the South East, leaving the rest of the UK to share 35%. Bigger EIS/VCT headroom should help strong Northern firms stay eligible for longer as rounds scale past £5m. (gov.uk)

There is already a platform to build on. The British Business Bank’s £660m Northern Powerhouse Investment Fund II now covers the whole of the North-North East included-with debt and equity from £25k up to £5m via managers such as NEL Fund Managers, Maven and FW Capital. Early deals include Liverpool‑based BioGrad Education, backed through NPIF II debt finance last summer. (british-business-bank.co.uk)

Private capital is moving too. Mercia’s Northern VCTs completed a record £80m raise across their latest offers, signalling continued demand for regional growth stories. Leeds‑based YFM’s British Smaller Companies VCTs have also been in market through 2025/26 to extend backing for scale‑ups across Yorkshire and beyond. (investegate.co.uk)

Manchester and Leeds investors are combining forces as well: Praetura and Par Equity agreed to form PXN Group in 2025, a regional platform spanning EIS and VCT strategies with hubs in Manchester, Edinburgh and Leeds-an on‑the‑ground network that should pair neatly with the new tax headroom. (praeturainvestments.co.uk)

For firms eyeing a float, UK Listing Relief now exempts newly listed companies from the 0.5% Stamp Duty Reserve Tax on share transfers for three years from listing (operative for listings on or after 27 November 2025). HMRC says the aim is to boost liquidity and initial valuations. Note: this applies to UK regulated markets such as the LSE Main Market, not AIM. (gov.uk)

Some market watchers warn of a possible ‘cliff‑edge’ when the three‑year relief ends, so finance chiefs should plan their investor relations and secondary liquidity accordingly. Still, the direction is pro‑listing and designed to keep high‑growth firms at home. (europeantax.blog)

Founders and CFOs across the North now have a window. Update option schemes to reflect the new EMI limits; map a two‑stage equity path using the higher EIS/VCT ceilings; and speak early to BBB‑backed managers (from NPIF II to Regional Angels) about co‑investment routes. With VCT relief lower from April, expect funds to push harder for returns-build that into term‑sheet assumptions. (british-business-bank.co.uk)

Policy is still evolving. The government’s call for evidence on tax support for high‑growth companies closed in February; ministers say they will respond in due course. Expect further tweaks around how reliefs support scaling businesses outside London-especially where IP‑rich firms need non‑dilutive finance to match their growth. (gov.uk)

The test for 2026 is execution. If the North’s funds and founders seize the extra headroom-and if BBB’s guarantee work on IP lending lands-more companies can scale without relocating south. That is the point of the package. Now it’s over to boardrooms in Manchester, Leeds, Newcastle and Sheffield to make it count. (gov.uk)