Oral Answers to Questions

Debate between Alan Mak and Rachel Blake

Tuesday 23rd June 2026 Commons Chamber

[Alan Mak (Havant) (Con)]

9. What assessment she has made of the potential impact of reducing up-front venture capital trust income tax relief on VCT fundraising.

[The Economic Secretary to the Treasury (Rachel Blake)]

At the Budget, the Government announced a comprehensive package of entrepreneurship tax measures, designed to provide substantially enhanced support for scaling businesses across the UK. That includes doubling the maximum amount that a company can raise through the enterprise investment scheme and the venture capital trust scheme. Overall, the changes to those schemes are forecast to generate about £100 million per year of additional investment in high-growth, scaling companies, thanks to the increased scheme limits in the Budget.

[Alan Mak]

A recent industry survey revealed that 62% of VCT founders are scaling back growth plans, 45% are cutting headcounts, and 25% are leaving the country. Will the Government reverse the Chancellor’s plans to cut this relief, or will her legacy for Britain’s tech sector be lower growth, fewer jobs and lasting damage?

[Rachel Blake]

Absolutely not; we have real confidence in the British venture capital sector. In the 2025 Budget, we doubled the investment limits and gross assets threshold for the enterprise investment and venture capital trust schemes. Those changes are supporting growth and development.