"Startups Don't Grow in Friction" Metta's co-founder on what the UK government must do to unleash innovation

Wil Benton, co-founder and director of innovation ecosystem Metta, an organisation supporting startups, industry and governments with sustainable technology-driven innovation, doesn't mince words when it comes to what UK startups need - and where the government is falling short. "To make the UK a better place for startups and innovation, the government needs to take bold, practical steps," he says.

That starts with keeping and expanding the S/EIS allowance for UK-based private investors. "Early-stage startups need access to critical first-round funding," Benton says. "Beyond that, the loss of angel funding post-Brexit has left a gap that still hasn't been properly filled. More dedicated funds or fund-of-funds initiatives are needed to replace what was lost and keep high-growth potential startups from stalling too soon." But funding is just one piece of the puzzle.

"Innovation policy must remain a priority, particularly for SMEs developing novel technologies that can have a strong base in the UK," Benton notes. "At the same time, we need to tackle barriers to competition. The government must take a firmer stance on reducing anti-competitive moats that protect established tech giants and ensure that dominant platforms are held accountable for the damage they have done – and continue to do – to society."

Talent is everything
A major friction point Benton identifies is talent: how to find it, train it, and keep it.

"It should be easier to hire, train, and retain top talent," he says. "UK startups must have better engagement with academic institutions to drive innovation. That also means addressing the outdated and often predatory Technology Transfer Office (TTO) frameworks, which still act as unnecessary blockers to commercialising British academic research."

"We should have resolved these issues by now – but they persist and continue to stifle growth."

Play to win (Not to copy)
While many continue to compare the UK to Silicon Valley, Benton has a different take. "We'll never replicate Silicon Valley, and we don't need to," he says. "Instead, we should double down on areas where we have a genuine competitive edge – space, biotech, culture, and defence – and build world-class ecosystems in those sectors."

Climate, too, can't be left behind. "Innovation should be leveraged to drive climate-positive impact. The government must commit to sustainability, not backtrack on climate policies for short-term political gain," Benton warns. "Rolling back sustainability frameworks to appease right-wing voters is shortsighted and dangerous – we're already facing the consequences of climate inaction. The planet will survive, but we won't. That's not rocket science."

Brexit: No More Pretending
One of the most candid parts of Benton's perspective lies in the aftermath of Brexit. "It has damaged the UK's economic and innovation potential, limiting both funding and opportunities for collaboration," he says. "Instead of pretending otherwise, we should focus on rebuilding stronger ties with EU partners while preparing for increasing global instability – whether in politics, security, water, food, or land access."

While government-backed R&D tax credits have helped some in the past, Benton says they haven't played a role in his current company. "They haven't – at least not for my current business. However, I did benefit from them in my previous startup around nine years ago," he says. "At the time, they were a fantastic support mechanism, helping us reinvest in innovation and growth. I hope they remain just as effective today, ensuring startups and SMEs get the relief they need without unnecessary hurdles from HMRC or misuse of the system."

What Startups Really Need
"To accelerate growth, UK startups need easier access to capital at every stage, from early investments to scaling rounds," Benton explains. "Funding must be more readily available and accessible." But that's not all.

"A stronger talent pipeline is also essential, supported by better visa pathways and skills development programs," he adds. "Beyond funding and talent, the UK must foster a truly founder-friendly environment by cutting red tape, simplifying regulations, and providing meaningful mentorship."

Importantly, he calls out a London-centric bias in the ecosystem: "Innovation isn't limited to London. The government must invest in regional startup ecosystems to ensure success stories emerge from across the country, not just within the M25."

And there's a warning for policymakers: act now or watch the talent drain accelerate.

"The UK is a powerhouse in education and research, yet we're seeing a concerning brain drain," he says. "Many of our brightest minds – and their startups – are leaving for jurisdictions like the USA and UAE. Why? Because they offer more attractive funding environments, fewer bureaucratic hurdles, and greater government-backed incentives."

"If the UK truly wants to stay ahead in these times, we need to invest in UK industry, build on our strengths, and work with diverse stakeholders to maintain our competitive edge." Because, as Benton bluntly concludes:
"Startups don't grow in environments filled with unnecessary friction, weak investment, and outdated policies."