BVCA Response to Budget 2008

First, we were pleased that the Chancellor announced that he wanted much more public procurement to be targeted at small- and medium-sized enterprises. This is something for which the BVCA has been arguing for some time in submissions to HM Treasury and discussions with officials and advisers. We believe this could make a significant difference to all SMEs, including those backed by our members. We are also pleased that Anne Glover, Chief Executive of Amadeus Capital Partners and a former Chairman of the BVCA, who will of course be known to many of you, has been asked to head a review to take this initiative forward. The target is that up to 30% of public procurement could be opened up to SMEs.

The BVCA had also been pressing for small company tax reliefs to be extended to firms backed by venture capital funds. It was therefore disappointing that the Chancellor has not acted in this area. This means these firms will continue to be treated differently from other private companies, and is a missed opportunity because it is venture capital-backed companies who have the potential to generate jobs during an economic downturn. We will continue to talk to HM Treasury to try to address this issue in future.

More generally, we endorse the Chancellor's constant references to stability. We have been arguing consistently that what our industry needs now is a period of certainty in the overall tax and regulatory environment. While we don't like the changes that have already been announced to the non dom regime, it was noticeable that the Chancellor promised that there will be no further change during this parliament and the next. While technically of course he can't speak for the next parliament, he was intending to send a clear signal that he doesn't plan to make further changes in this area, which should be good for confidence.

We will of course continue to communicate to you any further details and developments.

Regards

Simon Walker
Chief Executive
BVCA - The British Private Equity and Venture Capital Association