In its response to the government’s consultation into the accessibility of the scheme, Eisa attacks the new £2 million annual investment limit recently imposed by Brussels.
In light of the reduction, Eisa urges HMRC to: “sweep away many of the detailed regulations that are a burden to the scheme’s administration.” The association also calls for a national campaign in cooperation with HMRC to raise awareness of the scheme amongst investors.
Commenting on the recommendations, Eisa director Martin Sherwood says: “Our submission is critical of EU intervention because it has not only reduced the funding limits but also introduced further red tape. We have been advised by HMRC that it is far too early for them to produce evidence strong enough to challenge Brussels. It would be a poor result for the UK’s enterprise culture if we have to wait for the scheme to be strangled by EU red tape before the Government is prepared to lobby Brussels for change.”