Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to increase the uptake of the Social Investment Tax Relief.

The Social Investment Tax Relief (SITR) was introduced in 2014 to encourage risk finance investments in qualifying social enterprises. HMRC statistics show that up to 2018-19, about 110 enterprises have used the scheme to raise £11.2 million.

At the Budget on 3 March, the Government announced that SITR would be extended for two years, until April 2023, to continue support for qualifying investments into social enterprises. SITR will be extended with its current eligibility rules and targeting, to ensure that the scheme continues to focus on higher risk social enterprises that face the greatest difficulties in accessing finance.

The Government keeps all taxes and reliefs under review in order to ensure they continue to meet policy objectives in a way that is fair and effective. The Government previously published a Call for Evidence in 2019 on SITR’s use to date. The Government will publish a Summary of Responses to this on 23 March.