Individual Savings Accounts: AIM Shares Debate
Full Debate: Read Full DebateLord Forsyth of Drumlean
Main Page: Lord Forsyth of Drumlean (Conservative - Life peer)Department Debates - View all Lord Forsyth of Drumlean's debates with the HM Treasury
(12 years, 6 months ago)
Lords ChamberMy Lords, the AIM market has been very successful, and I do not want to say anything to suggest that it is not. However, it is true that the number of shares on that market has come down from a peak of about 1,700 to the current figure of about 1,140, and of course there has been a similar decline in the value of the market. Therefore, it is a successful market but one that has a range of much smaller shares within it.
My Lords, I should declare my interest as a director of an AIM-listed company. Is not the cost the real reason that my noble friend is not prepared to agree to this proposal? How is that consistent with the Government’s declared policy of wanting to encourage investment in small businesses and start-up companies in order to get the growth in our economy which is desperately needed?
My Lords, first, I explained the reasons why the Government decided—as the previous Government rightly did—not to make AIM shares eligible. On the other hand, I am happy to summarise some of the measures to support small businesses that the Government are taking—for instance, credit easing, with up to £20 billion of lower-cost lending; £1 billion through the business finance partnership for mid-sized companies through non-bank lending channels; greater tax relief for EIS and VCT schemes; more than £500 million going into venture capital funds, including through business angel co-investment funds; and the extension of the enterprise finance guarantee. I could go on.