MPs voice fury after Labour rejects over a dozen proposals to boost UK investment

Members of the House of Commons Business, Innovation, Science and Trade Committee have expressed disappointment after the government rejected a dozen or more proposals aimed at increasing UK investment. The committee's recommendations included revitalizing the London Stock Exchange, expanding venture capital, strengthening angel investor networks, and enhancing regional banking.

The government accepted 16 recommendations, partially accepted 18, and rejected 13 proposals. The committee criticized the government's response as insufficient for coordinated reform, needed to match international competition. Among the rejected proposals were a review to identify a second wave of stock market reforms for the London Stock Exchange, changes to share stamp duty and dividend tax relief, measures to grow venture capital assets, and consolidation of public finance institutions to enhance their capabilities.

Labour's committee chair, Liam Byrne, highlighted the lack of institutions with sufficient resources to support British firms, stating that the country risks losing high-potential new companies and jobs to American investors. The committee received 60 written submissions and heard from 37 witnesses, including the Venture Capital Trust Association (VCTA), which warned that the government's plan to reduce income tax relief for venture capital trusts to 20 percent could hamper the flow of capital to supported businesses.

The VCTA's Chair, Chris Lewis, emphasized the importance of restoring upfront VCT income tax relief to 30 percent to demonstrate the government's commitment to backing innovation and job creation.