MPs slam government for rejecting key investment reform proposals

The House of Commons Business, Innovation, Science and Trade Committee submitted a list of over a dozen reforms intended to revive investment in the United Kingdom, covering stock-market upgrades, venture-capital growth and stronger regional banks. In its response, the government fully accepted 16 proposals, gave partial approval to 18, and rejected 13, a split the committee described as insufficient for competing internationally.

Among the rejected items were a second-wave review of London Stock Exchange reforms, changes to share stamp duty and dividend tax relief, and a plan to merge public-finance institutions. Committee chair Liam Byrne warned that the lack of firepower in financial institutions is causing promising firms and high-paying jobs to migrate to the United States. The inquiry, which gathered 60 written submissions and heard from 37 witnesses, included input from the Venture Capital Trust Association, whose chair Chris Lewis said restoring VCT income-tax relief to 30% would signal government support for risk-taking entrepreneurs.