21th May

Albion Ventures calls for coalition focus on enterprise funding

Albion Ventures makes its case for British enterprise to the new Conservative/Liberal-Democrat Coalition and urges the Government to preserve Britain’s Venture Capital industry and support its role in stimulating enterprise.
 
Albion is concerned that the measures to be taken to reduce the budget deficit may be focussing too much on cost cutting rather than increasing tax revenue through growth.
 
Patrick Reeve, Managing Partner of Albion Ventures said:
 
“The UK economy is fragile; despite officially being out of recession any growth could quickly come to a halt. Spending cuts will be severe and could easily force the county back into recession.
We believe the economy’s ability to recover from its current position depends on stimulating enterprise, encouraging entrepreneurs and increasing tax take by increasing profits. Jobs will be lost from the public sector and it’s up to the private sector to create new ones. Stimulating enterprise and SME expansion are essential contributors to this.”
 
Albion Ventures points to the fact that Venture Capital Trust industry provides an existing infrastructure with a long record of delivering investment to SMEs. VCTs have repopulated the ground left by 3i, providing equity finance to growing companies through the £2.5 billion of assets under management devoted to fostering innovation and growth.
 
Recent research by the Association of Investment Companies showed a 47% rise in employment in VCT-backed companies  over the five years to 2009, as well as providing a 67% pa return on the Government’s investment through an increase in those companies’ underlying tax revenues.
 
In its last Budget the Labour Party announced a consultation on relaxing the investment criteria of Venture Capital Trusts. Albion Ventures welcomes this development and is urging the new Coalition Government to continue to recognise the contribution made to the UK Economy by VCTs.