The British Private Equity and Venture Capital Association’s response to the October Budget

BVCA Chair and Managing Partner of IQ Capital, Kerry Baldwin, said:

“The Chancellor’s commitment to see the UK flourish as the world-leader for establishing and growing innovative businesses was made even clearer today and his Budget reinforces the role that venture capital and private equity plays in making this a reality.

“The Chancellor and his team have listened to founders, to funders and to the science community. The Chancellor’s plan for growth will support start-ups and scale-ups to access the funding they need to flourish, to find the support they need to scale, and to bring in the world-leading talent they need to develop their success here in the UK. This will cement the UK’s position as one of the most competitive places to launch and grow the best and most innovative firms.

“The private capital industry stands ready to support the Chancellor’s bold plan for growth. We will continue to support the economy to grow post-COVID, creating jobs in all corners of the UK – more than 1 million of which are already supported by BVCA members alone – and build transformative products and services which will make the UK a science and technology superpower.”

Director General of the BVCA, Michael Moore, said:

“We strongly welcome the focus on growth by the Chancellor after the unprecedented action needed to tackle the coronavirus pandemic. Today’s Budget will help to drive investment into the very businesses building our economic recovery and creating jobs right across the United Kingdom.

“We will work with the government as it looks to amend the charge cap to allow defined contribution pension schemes to invest in private capital – driving capital into the most innovative businesses in the UK and better returns for pensioners. The additional support for the British Business Bank and the unlocking of foreign investment are also welcome acknowledgements of the value that private capital can bring to UK businesses at all growth stages.

“Additionally, we are pleased to see the introduction of the regime for the taxation of Asset Holding Companies (AHCs) and would like to thank HM Treasury for their engagement on this area.”

Notes to editors

1. If you have any further questions, please contact BVCA External Comms Manager, Will English, on [email protected].


2. The government will consult on further changes to the regulatory charge cap for defined contribution pension schemes to unlock institutional investment to support some of the most innovative businesses.


3. Reforms to R&D tax reliefs will ensure that they better support cutting-edge research methods and that the UK more effectively captures the benefits of R&D funded by the UK taxpayer through the reliefs.


4. Over £1.6 billion for the British Business Bank’s (BBB) regional funds, which provide debt and equity finance to SMEs. This will expand these funds into the North East and South West of England. It will also provide for the BBB to set up new funds in Scotland (£150 million) and Wales (£130 million), and to build on its existing programmes in Northern Ireland (£70 million), working closely with the devolved administrations.


5. The British Private Equity & Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has over 750 member firms, including more than 450 fund managers and institutional investors, representing the majority of UK-based private equity and venture capital firms and their advisers.