BVCA Response to PBR Dec 09

9 December 2009

Responding to today's Pre-Budget Report, Simon Walker, Chief Executive of the BVCA, said:

It is astonishing that the Chancellor has chosen to impose a tax on job creation at a time when economic recovery is the priority. The increase in National Insurance contributions will serve to erode further the UK's competitiveness and slow economic recovery.

The top level of personal income tax in the UK will now effectively be 52%. That is a higher rate than any of our principal competitors including France, Germany, Switzerland and the U.S. This must be a continuing disincentive to living and working in Britain. It continues the erosion of the competitive advantage of London as a global financial centre.

The one ray of hope for British private equity and venture capital is that the Government is on course to create Europe's largest technology venture capital fund. To achieve £325m in less than six months after the fund was announced is very impressive, particularly in the current climate. Venture capital-backed businesses will be key to the UK's future growth. 

For further information, please contact:

Nathan Williams  020 7420 1807