§ Mr. WigginTo ask the Secretary of State for Trade and Industry if she will make a statement on Government policies to encourage venture capital in the UK. [73832]
§ Nigel GriffithsThe Government recognises the importance of venture capital as a source of finance for business and we have aimed to create an economic climate in which the venture capital industry can flourish. As well as providing tax incentives to encourage more individuals to invest in venture capital, we have commissioned the Myners Study to examine how it might be possible to encourage more institutional investment.
We have worked closely with representatives of the venture capital industry to develop programmes like the UK High Technology Fund, Regional Venture Capital Funds and the Community Development Venture Fund. In each of these the Government, by making a core investment, has successfully levered in significant private sector finance. This is the first time that a Government of this country has directly invested in venture capital funds with the aim of improving small and medium-sized enterprises' (SMEs) access to finance.