IW Capital's Davis Comments on UK Budget
Luke Davis, CEO and Founder of PE firm IW Capital, offered his response to today's UK budget.
"In summary, that was a Budget for Industrial Strategy. The doubling of the EIS limit for knowledge intensive companies is of course a welcomed revelation, as are the numerous initiatives set in place by the Chancellor to support R&D and tech-innovation for scaling companies, in addition to bringing forward the CPI rate for small-businesses. That said, the devil here is in the detail - how "knowledge intensive" and "low-risk" are quantified are yet to be seen and measures that I will be observing keenly when the Treasury releases the full suite of official documents. The underlying objective of protecting the EIS for its founding premise as opposed to its misuse as a tax-shelter is vital, as are the concerted efforts to advance nationwide infrastructure for business - focusing on the Northern Power House and midlands-based initiatives. I'm encouraged by the Chancellor's directed intentions, this was an announcement geared around building a future-proof skills-base for the UK private sector. However, his concerted prioritisation of small businesses as the backbone of the UK economy must be assessed against the small-print as opposed to the impressive broad-statements heard today, especially for areas such as the much-speculated asset backed EIS."