Northern Powerhouse fuelled by private equity and venture capital
Responding to today’s Budget statement by the Chancellor of the Exchequer, Tim Hames, Director General of the British Private Equity & Venture Capital Association (BVCA), said:
“We are delighted that the Chancellor shares our view that we need a recovery for the whole of the UK. We set up BVCA Manchester last year to help raise awareness of the investments being made by private equity and venture capital in the North of England and the remarkable growth story unfolding there. We partnered with Jim O’Neil and the City Growth Commission to raise awareness of the policy support needed that would help our businesses do even more. It is the first and most important aspect of our Investment Agenda for the next Parliament.
“And the Government is listening. The Chancellor announced the devolution of transport and health control to the Northern Powerhouse, and now finally fiscal authority. Along with the new powers to retain business rates, this is a model we would like extended to other areas of the country such as Cambridge, as mentioned by the Chancellor, and where private equity and venture capital is very active, backing some of the most innovative and dynamic companies in the world.
“Another plank of our Investment Agenda called for employers to control the funding of apprenticeships, so as to ensure their quality and effectiveness. As such we are very pleased with the announcement of the Apprenticeship Voucher which seeks to do just that, helping to produce a new generation of skilled workers.
“We also welcome generous extensions to the Enterprise Investment Scheme and Venture Capital Trusts, with the investment limit for both extended from £15 million to £20 million for knowledge intensive-companies, as well as the employee limit raised from 250 to 499 - subject to state aid clearance - meaning more high growth businesses, in Manchester, Cambridge and indeed the whole country, will benefit from further investment, leading to more growth and more jobs.”
Notes to editor
- The Investment Agenda is the BVCA’s new campaign designed to explain why private equity and venture capital matters: why it matters to business, why it matters to the economy and why it matters to the UK. Launched on 23 February it is addressing five key issues: national impact, skills & apprenticeships, social investment, exports and growth companies. The launch press release can be found here.
- The British Private Equity & Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has over 500 member firms, representing the vast majority of UK-based private equity and venture capital firms and advisers.
