Budget Resolutions and Economic Situation Debate
Full Debate: Read Full DebateJulie Marson
Main Page: Julie Marson (Conservative - Hertford and Stortford)Department Debates - View all Julie Marson's debates with the Department for Business, Energy and Industrial Strategy
(3 years, 5 months ago)
Commons ChamberI welcome this Budget, which is pragmatic and fair, and clearly responds to the extraordinary circumstances we find ourselves in. But it is much, much more than just short-term crisis management. In its ambitions for growth, it is an extraordinary Budget. It is a Budget that says to the world that this Government mean business when it comes to business. It announces that this Government want the UK to lead the world in innovative, high-potential, high-growth sectors of the future. I have been advocating something similar to the new “future fund: breakthrough” scheme for some time. It is a smart policy that helps to root innovation companies to the UK by getting more money into the venture capital ecosystem at early stages. With better access to capital at an early stage we will encourage cutting-edge businesses to grow and eventually list here. I also commend Ron Kalifa and Lord Hill’s work in this space.
I also welcome the review of the charge cap announced by the Chancellor and look forward to seeing more ideas in the coming months from the Treasury, Bank of England and Financial Conduct Authority’s industry working group. We have nearly £10 trillion-worth of assets under management in the UK, but only a tiny amount of that is ever directed at UK venture. Just 0.5% of UK defined-contribution pension investments were invested in unlisted equities in 2020. Too much capital is locked away in pension funds and hidden by a culture of avoiding any risk. In 2019, a mere 2% of the £48 billion raised by UK-based venture capital and private equity funds came from UK pension funds. I am delighted that this Government are beginning to grasp this nettle, and are prepared both to review the regulatory landscape and provide incentives.
Now is the time for a truly radical approach to this undertaking, and to lift the venture sector as an asset class, to be part of mainstream investing in its own right. That will be transformational. Venture capital has the power to propel us into the green and technology-led future to which we aspire. It has the power to lift our economy up, pay our debt down and provide skills, wealth and opportunities to our people and communities. We need to unleash the power of venture capital. This Budget sets us on that path, and I look forward to supporting the Government and being a part of this exciting journey.