HomeInsightsBVCA NewsDetails

BVCA responds to Budget

Publish Date 6 Mar 2024
Categories Budget
Responding to Jeremy Hunt’s Budget Statement on 6 March, BVCA Chief Executive, Michael Moore, said:

“With his announcement to further increase pension investments in UK growing businesses, and confirming the LIFTs process, the Chancellor has made further strides in creating the long-term framework we need to drive investment into growing businesses.”

On Mansion House reforms:

Michael Moore said: “We welcome measures that would increase transparency around where, and how effectively, UK DC pensions capital is invested which should encourage diversification across a broader range of assets.

“We look forward to working with the Government and regulators to ensure the detail helps DC schemes identify the substantial investment in UK businesses they can make through UK private capital funds. As the Chancellor said, savers in countries like Australia are benefitting from returns that UK savers should be getting too.”

On LIFTS, the Long Term Investment Fund for Technology and Science:

Michael Moore said: “The Government today confirmed the winners of the LIFTS process, which is one element to expanding the UK’s position as a hub for private capital and one of the best places to scale and grow a business.

“The BVCA welcomes the conclusion of this process which will ensure that money is unlocked for UK VC & growth equity funds to invest in the most innovative and fastest growing UK science and technology companies.”

On reforms to taxes on non-domiciled individuals:

Michael Moore said: “It good to hear the Chancellor acknowledge the importance of retaining a regulatory and tax environment that protects the UK’s attractiveness to international investors. We look forward to discussing the details of these proposals.”

On the new British ISA:

Michael Moore said: “Encouraging greater investment in promising UK companies is a welcome move to support growing businesses. It is important that we foster an environment that encourages the British public to invest for the future.”

On high net worth individuals investing in early-stage companies:

Michael Moore said: “We’re pleased to see the Government implement industry recommendations to reverse changes in the Financial Promotion Order exemptions for high net worth individuals and for sophisticated investors.

“The Government has listened to industry concerns about the impact of the changes on start-ups, early-stage companies and venture capital funds, expressed by the BVCA, the Enterprise Investment Scheme Association (EISA) and the UK Business Angels Association (UKBAA).”

Media contacts

James Gribben, BVCA: jgribben@bvca.co.uk
Headland: BVCAHeadland@headlandconsultancy.com

Notes to editors

BVCA and Public First carried out an online survey of senior investment professionals within the BVCA membership between 15-22 January 2024, receiving responses from over 60 senior decision makers in over 50 investment firms.

About the British Private Equity & Venture Capital Association

The BVCA, as the representative body for private equity and venture capital, connects institutional investors, fund managers, companies, advisers and service providers together, with our membership currently comprising more than 600 businesses from across the private capital ecosystem. This includes more than 250 PE and VC firms, 100 institutional investors and 200 professional services firms.

Private capital drives growth – providing the funding, expertise and long-term view that enables companies to innovate and flourish. Our mission is to advocate the transformative nature of the private equity and venture capital community.