Government looks to boost small business investment

The Treasury is holding a consultation on ways and means of increasing the level of funds that are invested in smaller enterprises. The hope is to encourage investors to put more money into start-ups and small firms with high growth potential.

The consultation will look at ways that Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs) can be simplified and changed.

Also under consideration is a plan to support seed investment through offering tax reliefs to business angels.

Many smaller firms experience difficulties in attracting equity finance because the modest size of the investment can put off investors who would rather invest larger sums in larger companies.

An alternative viewpoint is that the government should dramatically reduce taxes for small business and let the businesses look after themselves. What are your views?

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