Government aims to boost small business investment

Encouraging business investment is central to Government efforts to re-balance the economy, which is why the Treasury is holding a consultation on ways and means of increasing the level of funds that are put into smaller enterprises with good growth potential.

The consultation will look at how Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs) can be simplified and changed. Also under consideration is a plan to support seed investment through offering tax reliefs to business angels. Many smaller firms experience difficulties in attracting equity finance because the modest size of the investment can put off investors who would rather invest larger sums in larger companies.