The Government needs to tread carefully if SMEs are to take
advantage of possible new investment incentives, the Institute of
Directors has warned.
And it believes it would be better to lever off the existing
Enterprise Investment Scheme rather bring in an entirely new
one.
"Whatever Ministers decide they need to keep things simple if
this is to help create the jobs and prosperity the West Midlands is
crying out for," said regional chairman John Rider.
His comments came as the IoD published its response to Treasury
consultation document "Tax-advantaged venture capital schemes".
The Institute said a new initiative for seed capital might prove
of some benefit, but was not the most pressing requirement. Better
to promote growth across the board by keeping tax rates down for
all businesses.
Mr Rider went on: "If the Government does introduce a new
scheme, it must be kept simple, or it will not appeal to investors
or companies.
"The Government should try building on the existing, and
widely-understood, EIS."
Saying EIS was an opportunity for those with some spare cash to
invest in regional businesses, Mr Rider noted: "I commend the EIS
as a way of promoting the growth of smaller firms.
"It is a scheme where people can get a decent return on their
money while doing a great deal of good for the regional economy. It
is business backing business, creating badly needed
employment."