Spring Statement: response from Director General, EISA

Mark Brownridge, Director General of the EISA, said: “Following the Chancellor’s announcement that spending is back in surplus, the Enterprise Investment Scheme Association welcomes the action being taken by the Government to support and increase investment into small businesses across the UK, especially as we move towards leaving the European Union.

“With a review into late payments and £80m made available to firms seeking apprentices, it is clear that the government is taking into account the concerns of British business. Tomorrow the EISA is due to release a new report detailing the impact of Brexit on early stage and scale-up deal flow, in addition to investor sentiment towards the UK private sector.

“The report reveals that over a quarter of investors believe that Brexit will benefit knowledge-intensive companies, such as those in the fintech and medtech sectors, so the announcement of a new consultation into the creation of knowledge-intensive funds is both timely and in the interests of SMEs.

“Ahead of the doubled investment cap following Royal Assent on Thursday, the EISA also welcomes the Chancellor’s changes made to the Enterprise Investment Scheme. An estimated £7bn of additional investment is due to be unlocked following the doubling of the EIS investment cap for knowledge-intensive companies; an additional £7bn of investment that will flow directly into the innovative, creative companies that will be the architects of a post-Brexit Britain.

“The EISA is similarly welcoming of the new Risk to Capital condition, which will reduce tax-avoidance motivated investments and instead allow the focus to shift towards the investors who are providing crucial early-stage and scale-up funding to the UK SME community.