Back in August, EISA contributed to the Labour Party’s Start-up Funding Ecosystem Review. The Review, undertaken by Tom Adeyoola, Alexandra Depledge MBE, Julie Devonshire OBE and Lord Jim O’Neill, has been published today. You can read the full report here and EISA are delighted that one of the key recommendations is that:
“Labour should maintain and build on existing incentives, such as SEIS, EIS and the R&D tax credit system, to ensure investors and firms have the best possible incentives for growth.”
The report goes on to specify that Labour should:
“Commit to maintaining SEIS, EIS and VCTs – Through the call for evidence for this review, and the various roundtables that we have held, it is clear that there is strong evidence as to the benefits of both the SEIS and the EIS schemes in stimulating investment and entrepreneurship. Labour should commit to maintaining the incentives provided by those schemes and should commit to continuing the EIS and VCT incentives beyond their 2025 sunset.
Review whether the scope and scale of EIS and SEIS are sufficient – Labour should review the scope, scale, and design of both EIS and SEIS to ensure they are providing adequate incentives. This should include looking at whether the limits on how much companies can raise or the investor side caps are too low, whether the qualifying period should be extended, and whether there are important innovative sectors that are excluded by the current rules.”
In her foreword, Shadow Chancellor Rachel Reeves welcomed the report and explained that it answered key questions “about building on our pre-existing system of tax reliefs for entrepreneurs and investors – Seed Enterprise Investment Scheme, the Enterprise Investment Scheme and R&D tax credits – to widen access and ensure those tax reliefs work to the greatest effect, spurring innovation and entrepreneurship. The ideas contained in this document will inform the development of our next manifesto.”
It is excellent to see the SEIS and the EIS being recognised for the vital role they play in ensuring start-ups can access the capital they need and we welcome the Review’s support for the Schemes.