Community Development Venture Fund (Hansard, 2 July 2002)

§ Mr. Don Foster
To ask the Chancellor of the Exchequer, pursuant to his answer of 7 May 2002,Official Report, column 33W, on the Community Development Venture Fund, if he will place in the Library the performance indicators and targets that will be used for Bridges Community Ventures to measure performance. [61815]

§ Nigel Griffiths
I have been asked to reply.
The Fund Manager's performance will be primarily measured against:

(i) Commitment of the Fund within the seven year investment period, with at least 70 per cent. fully invested and the remainder committed to related follow on investment deals.

(ii) At least a 10 per cent. IRR across a portfolio of between 50 to 60 investment deals.

(iii) Investment deals being made in businesses located in the 25 per cent. most deprived qualifying wards in England, the business plans of which aim to:

(a) Create/safeguard that at least 35 per cent. of the employees of such businesses are from qualifying wards, or,

(b) Stimulate other businesses (e.g. supply chain) with at least 50 per cent. of non-salary expenditure going to local businesses in qualifying wards, or,

(c) Serve local people and businesses in qualifying wards—i.e. core target for services and products.

286W
The Government, along with the other investors in this pilot Fund, expects the Fund to achieve social, as well as investment, returns. An independent specialist will be engaged to evaluate social impact and assess the Fund's performance in helping achieve:- Wealth creation in deprived areas:- Creation of good jobs in fast growing businesses Developing entrepreneurial role models and, Encouraging others in the venture capital supply market to spread their investments into the more deprived areas.

§ Mr. Don Foster
To ask the Chancellor of the Exchequer. pursuant to his answer of 7 May 2002,Official Report, column 33W, on the Community Development Venture Capital Fund, if he will place in the Library (a) the criteria used for the tendering process and (b) a list of the companies who applied to administer the fund. [61675]

§ Nigel Griffiths
I have been asked to reply.
The Community Development Venture Fund (CDVF) is not a Government administered or contracted out Fund, so (a) and (b) do not apply. I also refer the hon. Member to parliamentary question No. 61674 answered today.
It is a private sector initiative led by Sir Ronald Cohen, in his pro bono role as chairman of the Social Investment Task Force. In order to ensure that public investment in the Fund represents good value for money in promoting the Government's objective of boosting entrepreneurial business in disadvantaged communities, agreement was negotiated based on its experience with the Regional Venture Capital Funds.

§ Mr. Don Foster
To ask the Chancellor of the Exchequer, pursuant to his answer of 7 May 2002,Official Report, column 33W, on the Community Development Venture Capital Fund, if he will list (a) public and (b) private investors in Bridges Community Ventures. [61672]

§ Nigel Griffiths
I have been asked to reply.
The public investor is the Government through the Phoenix Fund of the Small Business Service.
The institutional and major individual private sector investors are listed on the Fund Manager's website at: www.bridgesventures.com and are: Doughty Hanson & Co; HSBC; Lehman Brothers; Lloyds TSB (Scotland); Merrill Lynch; Reuters; Royal Bank of Scotland: Schroder Salomon Smith Barney (partners in Citigroup); West Midlands Pension Fund; Sir Ronald Cohen and Tom Singh.

§ Mr. Don Foster
To ask the Chancellor of the Exchequer, pursuant to his answer of 7 May 2002,Official Report, column 33W, on the Community Development Venture Fund, which Government Department will provide the funding announced in the last Budget for Bridges Community Ventures Ltd. [61673]

§ Nigel Griffiths
I have been asked to reply.
The funding for the Government's investment in the Community Development Venture Fund is being provided by the Small Business Service (Department of Trade and Industry), through its Phoenix Fund.
287W

§ Mr. Don Foster
To ask the Chancellor of the Exchequer, pursuant to his answer of 7 May 2002,Official Report, column 33W, on the Community Development Venture Fund, if he will place in the Library the invitation to tender for the Community Development Venture Fund; and if he will make a statement on how the information was made available. [61674]

§ Nigel Griffiths
I have been asked to reply.
The Community Development Venture Fund (CDVF) is not a Government fund but a private sector led venture capital initiative, in which the Government are an investor alongside other private sector investors. As such, the issue of invitation to tender does not arise in this case.

Number of pensioners paying tax at lower¹ rate (000s) Percentage of all pensioners² Number of pensioners paying tax at starting³ rate (000s) Percentage of all pensioners² Number of pensioners paying tax at 'sovers' rate⁴ (000s) Percentage of all pensioners² Number of pensioners paying tax at basic rate⁵ (000s) Percentage of all pensioners² Number of pensioners paying tax at higher rate⁶ (000s) Percentage of all pensioners²

1992–93 1,160 11 — — — — 2,190 21 130 1

1993–94 1,520 14 — — — — 1,920 18 130 1

1994–95 1,390 13 — — — — 2,310 22 160 2

1995–96 1,680 16 — — — — 2,110 20 180 2

1996–97 2,270 21 — — — — 1,430 13 160 1

1997–98 1,840 17 — — — — 1,980 19 180 2

1998–99 1,950 18 — — — — 2,200 21 190 2

1999–2000 — — 720 7 610 6 2,650 25 220 2

2000–01 — — 760 7 610 6 2,750 25 230 2

2001–02' — — 920 9 580 5 2,750 25 230 2

¹ From 1993–94 until 1998–99 a number of taxpayers with taxable income in excess of the lower rate limit only paid tax at the lower rate. This was because it was only their dividend income and (from 1996–97) their savings income which took their taxable income above the lower rate limit, and such income was chargeable to tax at the lower rate and not the basic rate.

² Source: Government Actuary's Department.

³ In 1999–2000 the starting rate replaced the lower rate. Taxpayers with a marginal rate at the 10 per cent. starting rate from an extra £1 of earnings.

⁴ Taxpayers with a marginal rate at the 20 per cent. lower rate for savings income or the 10 per cent. ordinary dividend rate from an extra £1 of earnings. Before 1999–2000 these people would have been classified as lower rate taxpayers.

⁵ Taxpayers with a marginal rate at the basic rate from an extra £1 of earnings.

⁶ Taxpayers with taxable income above the higher rate threshold.

⁷ Provisional.

Pensioners are defined as women aged 60 and over and men aged 65 and over. This information is based on the Survey of Personal Incomes.

	Number of pensioners paying tax at lower¹ rate (000s)	Percentage of all pensioners²	Number of pensioners paying tax at starting³ rate (000s)	Percentage of all pensioners²	Number of pensioners paying tax at 'sovers' rate⁴ (000s)	Percentage of all pensioners²	Number of pensioners paying tax at basic rate⁵ (000s)	Percentage of all pensioners²	Number of pensioners paying tax at higher rate⁶ (000s)	Percentage of all pensioners²
1992–93	1,160	11	—	—	—	—	2,190	21	130	1
1993–94	1,520	14	—	—	—	—	1,920	18	130	1
1994–95	1,390	13	—	—	—	—	2,310	22	160	2
1995–96	1,680	16	—	—	—	—	2,110	20	180	2
1996–97	2,270	21	—	—	—	—	1,430	13	160	1
1997–98	1,840	17	—	—	—	—	1,980	19	180	2
1998–99	1,950	18	—	—	—	—	2,200	21	190	2
1999–2000	—	—	720	7	610	6	2,650	25	220	2
2000–01	—	—	760	7	610	6	2,750	25	230	2
2001–02'	—	—	920	9	580	5	2,750	25	230	2
¹ From 1993–94 until 1998–99 a number of taxpayers with taxable income in excess of the lower rate limit only paid tax at the lower rate. This was because it was only their dividend income and (from 1996–97) their savings income which took their taxable income above the lower rate limit, and such income was chargeable to tax at the lower rate and not the basic rate.
² Source: Government Actuary's Department.
³ In 1999–2000 the starting rate replaced the lower rate. Taxpayers with a marginal rate at the 10 per cent. starting rate from an extra £1 of earnings.
⁴ Taxpayers with a marginal rate at the 20 per cent. lower rate for savings income or the 10 per cent. ordinary dividend rate from an extra £1 of earnings. Before 1999–2000 these people would have been classified as lower rate taxpayers.
⁵ Taxpayers with a marginal rate at the basic rate from an extra £1 of earnings.
⁶ Taxpayers with taxable income above the higher rate threshold.
⁷ Provisional.