Small businesses to gain from 100% rise in VCT levels

Date: 23rd April 2010

Small businesses in the UK could be set to gain from the high level of funds raised by the venture capital trust (VCT) sector in the last tax year, it has been claimed.

According to the Association of Investment Companies (AIC), £340 million was raised by the VCT sector in the last tax year.

By way of contrast, the 2008-09 tax year saw only £158 million raised.

The 2009-10 result is the fourth highest amount raised since VCTs were introduced in 1995, the AIC said.

Ian Sayers, director general of the AIC, said: "This year's impressive fundraising will increase VCTs' capacity to support companies which find it difficult to raise development capital.

"It is particularly valuable given banks' continued reluctance to lend to small businesses. This money will support enterprises across the UK in key growth sectors, help create jobs, develop export markets and increase investment in research and development."

Posted by Emily Smith