Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether they plan to amend the £2.5 million lending cap for wholesale Community Development Finance Institutions lending to retail Community Development Finance Institutions using the Community Investment Tax Relief.

At Spring Budget 2023, the government increased the amounts that Community Development Finance Institutions (CDFIs) can raise through the Community Investment Tax Relief (CITR) from £20 million to £100 million for wholesale CDFIs, and £10 million to £25 million for retail CDFIs. The amounts that CDFIs can lend to eligible businesses was also increased from £250,000 to £375,000 for non-profit distributing organisations and £100,000 to £250,000 for profit distributing organisations. The government keeps all tax reliefs under review and will monitor the impact of these changes.