Budget Resolutions

Gurinder Singh Josan Excerpts

Monday 2nd November 2026 Commons Chamber

[Gurinder Singh Josan (Smethwick) (Lab)]

I am pleased that this Budget sets a clear priority to address the cost of living. More than 44,000 households in my Smethwick constituency will receive the £100 payment to help with their energy bills, and the business rates freeze will benefit 52% of retail, hospitality and leisure properties in the west midlands, including 1,198 properties in my constituency.

It is clear that decisions taken by this Labour Government, the current Chancellor and the previous Chancellor have been instrumental in keeping UK growth at the top end of growth in all G7 countries. Furthermore, in the past two years the Government have set out an ambitious programme of investment in key industries, including in nuclear energy, green energy and defence industries to name a few. Alongside that public investment, those industries will need crucial private investment to grow to their full potential. For that reason, I would have liked to see the restoration of the 30% up-front income tax relief for venture capital trusts, which was reduced to 20% at the last Budget, as that relief is vital in supporting British small and medium-sized enterprises in their early stages of development.

Venture capital trusts already support over 1,100 British companies, predominantly in tech sectors, employing over 100,000 people and generating £21.8 billion in revenue in the last year alone. Those businesses often have high up-front costs, long development cycles and uncertain terms that can make conventional finance difficult to secure. In 2006, when the relief was reduced from 40% to 30%, fundraising reduced by around 65%, and it took 16 years for it to recover. At last year’s Budget, the relief was reduced further from 30% to 20%, and as a result, industry estimates suggest a decline in fundraising of anywhere between 30% and 60%, which is equivalent to between £1.25 billion and £2.5 billion less growth equity for UK scale-ups over the next five years.

Restoring the 30% relief would incentivise investment in SMEs across the country to support Government investment. It would allow investment into firms that are crucial to the supply chains that will help to secure our place as a global leader, build our national resilience and deliver growth in every postcode. Every pound invested by VCTs unlocks an additional £2.33 in funding from additional sources. The Treasury has already shown a willingness to support small businesses. Indeed, last year the then Chancellor listened to the industry and implemented changes that it had been requesting for many years. I hope that the Treasury will consider restoring the relief to 30% as part of a wider industry strategy that supports our ambition for growth in every postcode.