Responding to today's budget, Simon Walker, Chief Executive of the British Private Equity and Venture Capital Association, said:
"The Chancellor claimed that his Budget would focus on 'investing in the future' and 'playing to this country's strengths' while ensuring that Britain remained a 'world class centre for finance.' The reality is that he has invested in the past, is undermining the country's strengths and his measures represent a real threat to Britain's status as a world financial centre.
The income tax increases which he has announced effectively end Britain's competitiveness in taxation and will discourage investors from being located and doing business here. The borrowing figures are breathtaking and should have been scaled back by a much more vigorous approach towards public spending. Measures on pensions tax relief further distort the pension system and act as a disincentive to saving and investment.
The BVCA is particularly and deeply disappointed by the decision to create a vague Strategic Investment Fund, which looks like a return to the public sector seeking to "pick winners" (but ultimately subsidise losers), rather than the highly targeted UK Innovation Fund for venture capital in which the private sector would have played a pivotal role. This is, in short, not a Budget for recovery but a Budget which makes the burden for British business even heavier".
Simon Walker, BVCA Chief Executive, will be available for comment after 4.30pm on 07917 137 814
For comment before 4.30pm please contact Tim Hames, BVCA Head of Communications and Public Affairs, on 07721 508 082
----- ENDS -----
For further information please contact:
Simon Walker, BVCA: 07917 137 814
Tim Hames, BVCA: 07721 508082
Nathan Williams, BVCA: 020 7025 2967
Notes to Editors
1. The BVCA, The British Private Equity and Venture Capital Association, is the industry body for the UK private equity and venture capital industry. The BVCA has over 450 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
