Statistics from the Association of Investment Companies (AIC) show there was a £21 million increase in the amount raised in the past tax year compared with the year before. A total of £365 million was raised in 2010-11 compared with £344 million in 2009-10.
The amount is far from the record £779 million raised in 2005-06, however, it signals a return to growth in VCT investment after the recent recession low-point of £158 million in 2008-09. The total amount raised under the scheme since it was launched in 1995 stands at £4,265 million.
The result may inject some much-needed confidence in the sector after Chancellor George Osborne’s comments ahead of last month’s Budget that there remains a ‘question mark’ over the merits of the scheme. Also, there have been concerns about planned renewable energy and solar VCTs following government changes to feed-in tariffs.
Association of Investment Companies director general Ian Sayers comments, ‘The considerable capital raised by VCTs in the last tax year will help VCTs to continue to support smaller UK companies and play their part in establishing the UK as a home of enterprise.
‘The level of investment in VCTs has increased year on year since the financial crisis of 2008, proving that, as the economy recovers, the demand for investment from small and medium-sized enterprises grows.’
Historic VCT fundraising figures
Tax year Fund raising (£millions)
1995/6 160
1996/7 170
1997/8 190
1998/9 165
1999/2000 270
2000/1 433
2001/2 125
2002/3 65
2003/4 50
2004/5 505
2005/6 779
2006/7 267
2007/8 219
2008/9 158
2009/10 344
2010/11 365
Total 4,265
