Skyscanner’s chief executive has insisted that his £1.4bn sale to the Chinese travel giant Ctrip will come as a boost to the firm, despite it adding to concerns that British technology companies sell out too early.

The Edinburgh-based start-up, a search engine for cheap flights, hotels and car rentals, announced yesterday it had agreed to be bought by Ctrip, China’s biggest travel company.

The takeover comes just a day after Philip Hammond lamented a perceived short-termism among British technology founders in his Autumn Statement speech, and promised more funding for start-ups who feel under pressure to sell to foreign buyers.

Gareth Williams, who co-founded Skyscanner 15 years ago, said the deal would “take the business to the next level”, increasing investment in the company and allowing it to remain independent.