BVCA welcomes George Osborne's statement

Responding to the Chancellor of the Exchequer's Autumn Statement, Mark Florman, Chief Executive of the British Private Equity and Venture Capital Association (BVCA), said:

"The BVCA welcomes the Chancellor's statement for stability. George Osborne has reinforced the Government's determination to drive down the deficit while engaging in a sensible shift from current to capital spending. This is the right response to the real threat that the UK economy faces from the eurozone crisis. The private equity and venture capital sectors support the National Infrastructure Plan, the National Loan Guarantee Scheme and the Business Finance Partnership. The BVCA stands ready to work with ministers in promoting economic growth. The further liberalisation of the EIS and VCT schemes will also play a valuable part in sustaining and supporting the start up business community through what will clearly be a challenging 12-18 months for the British, European and international economies."

Commenting on the detail of the proposals, especially as they affect the EIS and VCT schemes, Richard Anton, partner at Amadeus Capital Partners and the BVCA Chairman, asserted:

"The Chancellor has today offered an invitation to invest in innovation. This is a rare case of a George coming to the assistance of Dragons. Angel investors will be delighted by the introduction of a 50% rate of income tax relief on up to £100,000 for qualifying companies and the abolition of the £1 million limit on investment into a company by venture capital trusts should have a very positive impact. The promise of new funds for smaller technology firms, the various credit easing proposals that have been announced and the pledge to extend superfast broadband swiftly will all be widely cheered. In addition to these measures, the Treasury should look to extend current initiatives to the fund level as well as individual investors. This will enable venture capital to champion innovation and assist in the rebalancing of the economy."

Notes to editor