20 Oct 2010

Response to Comprehensive Spending Review


"The BVCA strongly supports the Government's deficit reduction plans announced in today's Spending Review. The Chancellor has managed to keep total public spending within the overall envelope set out in the Office for Budget Responsibility's latest forecasts - which was for current spending to rise to £693bn in FY14/15 - and this will reassure investors and financial markets that the UK is putting its fiscal house in order.

The BVCA welcomes the Government's recognition that the UK's businesses will be the driving force behind the country's economic recovery. In the face of public sector retrenchment, private equity and venture capital are more than ready to step up to the plate and drive the economy forwards. By generating sustainable growth and employment, private equity and venture capital can play a hugely important role in backing and supporting companies throughout the many regions and sectors of the UK economy.

In particular, we are pleased to see the Chancellor recognise the importance of science and innovation to future economic growth. Maintaining the science budget in cash terms at £4.6bn will help safeguard the future of UK entrepreneurship and turn today's high-tech start-ups into tomorrow's world class businesses.

The Government also reaffirmed its commitment to the development of a low carbon economy with £1bn of public money to support the creation of a green investment bank. We welcome the initial investment to underpin this important institution but we must recognise this is only the beginning - without further capital from asset sales and private investment, the Green Investment Bank will not be able to raise and deploy the £200bn we need to green our economy.

The £400m of extra funding for regional development, over and above that announced in the June Budget, is also to be applauded. We have long argued that funding for entrepreneurial businesses across the country, not just in London and the South East, is vital for our long-term economic growth. We welcome the investment in infrastructure throughout the UK that will help bring this about."



Notes to editor
  1. The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has approximately 520 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.

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