UK Business Secretary Peter Kyle has declared he is 'betting big' and 'picking winners' as the government takes direct stakes in growing businesses to stimulate economic growth. Speaking at the World Economic Forum in Davos, Kyle outlined an activist industrial policy, including allowing the state-owned British Business Bank to buy equity stakes in companies.
Kyle defended the approach, which was once criticised by Margaret Thatcher, arguing it could accelerate growth. 'We’re predicted to grow 1.5% this year. That is not enough,' he said, highlighting a recent £25m investment in Octopus Energy's software spin-off, Kraken, as an example of targeting scale-up companies.
The business secretary acknowledged that some interventions may fail but insisted failure is part of a healthy economy. He also emphasised the need to attract global talent, particularly in technology and life sciences, amid uncertainty caused by Donald Trump's tariff threats.
Kyle said the UK aims to capitalise on instability from US policies to attract jobs and investment, stating, 'I will suck the best talent in from wherever it exists.' He argued that the UK offers a strong regulatory environment for scientific endeavour, contrasting with the current US climate.
