Mind the funding gap

Key points * The Treasury feels that reliefs need to be targeted to help small and medium-sized enterprises. * Effect of measure restricting loss relief available to partners

TWO EXPRESSIONS THAT my teenage daughters have a habit of using in conversation are that they are not 'bothered' and that I or someone else should 'build a bridge'. The first expression entertainingly featured in the Budget Speech response by David Cameron MP but it is the second expression that is relevant here. The bridge concerned is the one over the funding gap for small and medium-sized enterprises.

The gap

In 2003 the Treasury produced a document entitled 'Small businesses — bridging the finance gap' which was supported by research undertaken for the then Inland Revenue by PACEC. This looked into the effectiveness of the enterprise investment scheme and venture capital trusts. The report followed on from...