The BBC has reported that the Silicon Valley Bank collapse has left over 200 UK firms unable to pay their staff. Moreover, the report states that the government is working to protect and stabilize the UK tech firms that are affected by the SVB collapse.
The country’s treasury has stated that it wants to “minimize the damage to some of our most promising companies in the UK,” following the collapse last week. Additionally, the report noted that firms could start to experience problems by Monday morning if they are left without assistance.
UK Firms Affected by SVB Collapse
The last week has seen headlines dominated by the collapse of SVB Financial. Specifically, a bank failure that is the largest since the financial crisis of 2008. Subsequently, creating a situation in which the entire financial sector is concerned about potential exposure.
Now that exposure is even affecting industries overseas, as the Silicon Valley Bank collapse has left over 200 UK firms unable to pay their staff. Conversely, the government is currently working on a plan to protect UK tech companies from the fallout of the closing.
BBC reported that the treasury is working to “minimize the damage to some of our most promising companies in the UK,” following the SVB closing. Moreover, Prime Minister Rishi Sunak, Chancellor Jeremy Hunt, and Bank of England Governor Andrew Bailey worked through the night to address the issue.
Additionally, the three have been “working through the weekend to come up with a solution,” to the effect the closure could have on the country’s industries. Conversely, while the UK’s financial industry is not affected, “there is a serious risk to some of our most promising companies in technology and life sciences,” Hunt stated.