Oral Answers to Questions

Rachel Blake Excerpts

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.

[Mr Speaker]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

May I start by congratulating the former Economic Secretary, the right hon. and learned Member for Northampton North (Lucy Rigby), on her promotion to Chief Secretary? In the eight months that I shadowed her in her previous role, she made a strong impact and gained significant, well-deserved respect from those in the financial services industry. May I also welcome my fourth Economic Secretary, and wish her the very best of luck in the role?

As the Leader of the Opposition said in a speech last week, tax and regulation is getting in the way of financial services lending and investing in the UK economy. Does the new Economic Secretary think that the next Chancellor will do a better job of ensuring growth for this country?

[Rachel Blake]

This Chancellor has secured six interest rate cuts. We are creating the conditions for investment in business. Investment in skills and innovation is up; investment in regional infrastructure is up; and whole-economy investment is up by 4.9% since the election. This country is the best place for start-ups and scale-ups, thanks to the economic stability that the Chancellor has been securing.

[Matt Bishop (Forest of Dean) (Lab)]

10. What discussions she has had with Cabinet colleagues on potential funding for improving transport connectivity for border communities.