§ 25. Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer if he will make a statement on the increase in the availability of venture capital in the United Kingdom from 1997 to 2000. [125850]
§ Mr. TimmsAccording to statistics published by the British Venture Capital Association, the amount of venture capital invested in the United Kingdom increased from £3,066 million in 1997 to £6,169 million in 1999, the latest year for which data are available. The fastest growth sector was investment in management buy-outs 289W and buy-ins, which now account for around three quarters of total venture investment in the UK. Start-up and other early stage investments grew strongly, but still account for only some 6 per cent. of total venture investment in the UK. The Government are concerned to improve the availability of small scale and early stage venture capital in the UK, as well as addressing access across the UK's regions and across technology sectors. To this end, the Department of Trade and Industry, through the Small Business Service and a new Small Business Investment Taskforce, is working to stimulate the creation of new public-private partnerships, within the framework of a new £1 billion target "umbrella" fund, to increase the supply of small scale venture capital. To better understand the factors affecting the UK institutions' decisions on investing in venture capital and other asset classes, the Chancellor has also commissioned Paul Myners, chairman of Gartmore investment managers, to conduct a review and report with recommendations in time for the Budget in 2001.