It is the 30th birthday of the Enterprise Investment Scheme, which was launched back in 1994 by John Major’s government to help tackle the shortage of capital available to entrepreneurs trying to build high-risk companies.
Although the scheme has been amended many times since, it remains an important tool for entrepreneurs seeking to develop their businesses. The envy of many other countries, the Enterprise Investment Scheme Association claims that it is a major attraction for talent coming to the UK and a big part of why the UK is one of the best places to start a business.
The figures are pretty impressive – almost £30 billion of EIS investment has been raised by over 37,000 businesses – including some which went on to achieve Unicorn status, such as the likes of Deliveroo, Revolut and Zoopla. In the year to March 2023, some 1,280 used the scheme, up from 75 in its first year.
So, will we see a 40th birthday celebration?
Well, the good news is that the new Labour government seems to have recognised the merit of the scheme. This month they have confirmed the extension of the tax reliefs available under the Scheme for another ten years to April 2035, saying that it was key that these schemes continue as they are, because they have been shown to be so effective.
What else might we see in the October Budget announcement?
Well, that’s more difficult to say at this stage but it does feel that the indications are positive – if you read the Labour manifesto – for a commitment to supporting an industrial strategy of sorts.
Watch this space!
John Mathers
Chair
