"The chancellor needs to provide clarity and certainty on the future of these pro-growth schemes in next week’s budget.”
Baldwin noted a letter she received from Hunt this week (March 7) that noted the government's support.
"It is the government's firm intention to extend [these schemes] beyond the current sunset," he said.
Commentators have previously said that VCTs and EIS can help the UK's productivity problem.
Tax thresholds
In the Autumn Statement last year, Hunt extended the freeze on UK income tax allowances and thresholds until 2027/28.
Income tax thresholds were already frozen until 2026 under the previous chancellor, now Prime Minister, Rishi Sunak.
This move, seen as a ‘stealth tax’ will have pulled more people into the income tax system for the first time, or into higher tax bands over the years, as wages increase under record inflationary pressures.
Any further freezing of tax thresholds will leave millions out in the cold, said Tully.
“With an election around 18 months away, the chancellor may want to consider the impact these are having on many voters in advance of the next general election.”
sally.hickey@ft.com
