Lord Leigh of Hurley
Main Page: Lord Leigh of Hurley (Conservative - Life peer)
Lord Leigh of Hurley
To ask Her Majesty’s Government what assessment they have made of the opportunities for reforming the eligibility criteria for UK-based companies to access investments through the (1) Enterprise Investment Scheme, and (2) Seed Enterprise Investment Scheme, following the United Kingdom’s departure from the European Union.
Lord Leigh of Hurley (Con)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I draw your Lordships’ attention to my register of interests, which includes investments in EIS companies.
Baroness Penn (Con)
My Lords, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme are world-leading in their generosity, with more than £2 billion of funds raised across the schemes in 2019-20. They provide a range of reliefs for investment in small and growing companies with a permanent establishment in the UK. The Government keep the schemes under review to ensure that they continue to meet their policy objectives in a fair and effective way.
Lord Leigh of Hurley (Con)
I welcome my noble friend back to the House. The EU state aid rules, in particular the risk finance guidelines, are the reason why these important incentives for small and growing businesses are restricted. For example, they cannot be more than seven years old, there is a sunset clause and there is a cap on SEIS investments. Many restrictions were imposed on business by the EU, so now is the time for us to unwind them—particularly those that will facilitate investment into private companies by private individuals. Will my noble friend agree to facilitate a meeting between me and others interested in this area with Treasury officials to discuss this matter further?
Baroness Penn (Con)
My Lords, the schemes referred to by my noble friend are targeted at new and younger companies where asymmetry of information can make it difficult to attract the investment needed. However, we recognise that there is a scale-up gap in the UK, which is why we have other schemes, such as the British Patient Capital scheme, to support UK companies with high growth potential. I will happily take my noble friend’s request back to the Treasury, which is always looking at what more it can do to support British business.