Question to the HM Treasury:

To ask Her Majesty's Government what plans they have for revising the Enterprise Investment Scheme; and what assessment they have made of the economic impact of any future reductions in support available through that scheme.

The consultation Financing Growth in Innovative Firms set out the vital role the Enterprise Investment Scheme (EIS) plays in incentivising investment into early stage, high-growth firms. In 2015-16 more than 3,400 companies raised £1.9 billion through the scheme. The consultation also noted an ongoing issue of low-risk ‘capital preservation’ investments structured around the relief and asked an open question about how best to target the relief to ensure it helps innovative, high-growth firms receive the investment they need. The government will set out its response to the consultation in the Budget.