BVCA Budget Wishlist
Ahead of Wednesday's Budget statement, Mark Florman, Chief Executive of the BVCA, says:
"The Chancellor now has an unprecedented opportunity to deliver a truly transformative Budget. Following the worst recession for generations, the BVCA is calling on the Government to underline its commitment to economic growth by ensuring the UK remains the centre of entrepreneurship in Europe.
"Britain has a long and proud history of entrepreneurship and the onus is on the Chancellor to unleash the forces of innovation by building an enterprise culture within which British companies can grow and flourish. The BVCA has already designated 2011 'The Year of Venture' so we would urge the Government to do all it can to stimulate far more investment through the venture capital community. If the Chancellor is to set out his roadmap for growth, backing the market giants of tomorrow has to start today."
The BVCA's Budget Wish List:
- The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has approximately 520 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
- A sensible tax regime that encourages entrepreneurship. We need to reform Venture Capital Trusts and the Enterprise Investment Scheme to maintain the UK's position as Europe's centre of venture capital activity.
- A relaxation of Entrepreneurs' Relief rules to cover: a) angels and other non-employee private individuals who invest at risk, and b) employees who have less than a 5% equity stake. We would also encourage a lifting of the £5 million lifetime gain cap to encourage greater aspiration for growth.
- Further details on the Green Investment Bank. The BVCA believes a well-designed and implemented GIB can be vital to facilitating and accelerating private sector investment in support of the UK's energy targets, as well as in creating jobs for the British economy.
- Following recent events at Pfizer, AstraZeneca and Novartis there appears to be a shift away from in-house operations to out-sourcing research and development. The UK is particularly well-placed to exploit this opportunity. The Patent Box and Technology & Innovation Centres are a good start but we must see a holistic plan that will strengthen the UK's leading role in this important sector.
- Greater Government support to attract private sector investment into private venture capital funds, either through a 'Venture Czar' or through the Department for Business, Innovation and Skills or UK Trade & Investment.
- Encourage investment and innovation across the country through the creation of enterprise zones as well as deploying capital from the Regional Growth Fund to invest alongside VCs and angel investors to provide vital support for small businesses in those regions that most need investment.
- Maintain a stable and competitive tax framework in order to ensure the UK preserves and reinforces its position as the European home of private equity and venture capital.
Notes to editor
- The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has approximately 520 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
- For the BVCA's Budget submission, please click here
- For more information about the BVCA's 'Year of Venture' campaign, please click here
