HC Deb 31 July 1997 vol 299 cc455-6W
Mr. Cotter

To ask the Chancellor of the Exchequer what assessment he has made of the need for funding to assist small businesses in respect of equity gaps. [11788]

Mr. Geoffrey Robinson

The Government fully recognise the need for small firms to be able to obtain appropriate forms of finance. In the Budget, my right hon. Friend the Chancellor announced plans to sharpen the focus of the venture capital trust scheme and keep it under review to ensure that it remained properly targeted, while encouraging and rewarding risk taking by individuals.

Mr. Cotter

To ask the Chancellor of the Exchequer if he will assess the advantages of introducing tax incentives to encourage business to corporate venturing in relation to the provision of funding for capital high-technology and other small business projects. [11819]

Mr. Robinson

There is no clear evidence of a market failure in respect of corporate venturing by businesses. Nor is it certain that any market failure could be properly addressed by offering a tax incentive. But the Government recognise the importance of the small business sector, particularly high-technology businesses, and are determined to pursue policies which create a climate in which enterprise can flourish.

Mr. Horam

To ask the Chancellor of the Exchequer what response the Treasury has made to the Bank of England's October 1996 report on the financing of technology-based small firms. [12238]

Mr. Robinson

The Government agree with a number of recommedations in the Bank of England's report and are reviewing the loan guarantee scheme with a view to improving access for new high-technology start-up firms, within the existing resources of the scheme.

Mr. Horam

To ask the Chancellor of the Exchequer what plans he has to amend the enterprise initiative scheme and venture capital trust schemes to improve the availability of start-up and second-round funding for smaller businesses. [12236]

Mr. Robinson

My right hon. Friend the Chancellor recognises the progress the EIS and VCT schemes have made in raising investment for early stage and expending businesses. In his Budget, the Chancellor announced plans to sharpen the focus of the EIS and VCT schemes and intends to keep both schemes under review to ensure they remain properly targeted, while encouraging and rewarding risk taking by individuals.

Mr. Horam

To ask the Chancellor of the Exchequer what plans he has to encourage the provision of equity for start-ups in the small business sector and for high-technology small ventures. [12235]

Mr. Robinson

The Government fully recognise the need for small firms to be able to obtain appropriate forms of finance. We are currently reviewing the loan guarantee scheme to improve access for new high-technology start-up firms, within the existing resources of the scheme.