The Association of Investment Companies (AIC) has welcomed the progress made in the Windsor Framework announced yesterday, arguing that it marks a significant step forward in putting venture capital trusts (VCTs) on a firmer footing.
Guy Rainbird, Public Affairs Director at the Association of Investment Companies (AIC), said: “As well as the political implications, the economic dimension of the agreement is very significant. The future of the UK subsidy regime has been an important question which has now been settled in a way that puts the UK in control.
“Small business owners with ambitions to grow should welcome the agreement as it allows the government to continue its enterprise investment incentives, including venture capital trusts.
“HM Treasury can now unilaterally remove the ‘sunset clause’, previously imposed by the EU, which would have effectively ended the schemes in 2025.
“We hope that the Chancellor will take the opportunity to confirm this in his forthcoming Budget Statement and introduce the relevant legislation in the Finance Bill.”
VCTs invest in UK businesses with high growth potential. The AIC recently published a set of case studiesillustrating the kind of businesses that are receiving VCT funding. This was a follow-up to the ‘Funding opportunity’ report on the wider economic and social benefits of the VCT scheme.