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Finance (No. 3) Bill

The hon. Gentleman makes his point forcefully. It is worth pointing out that the UK leads the way internationally on the reporting of executive pay and accountability to shareholders. I hope that he will acknowledge that, just as I acknowledge the legitimate concerns he raises. It is our intention to make sure that the framework remains fit for purpose and in line with our approach to delivering long-term returns as our economy grows out of the recession. The hon. Gentleman's second amendment, amendment 17, would delay the introduction of clause 42 until a report on the impacts of the enterprise investment scheme had been published. In contrast with corporation tax as a whole, EIS is a focused relief with a particular purpose and is a vital component of the Government's plan for growth. The scheme encourages investment into smaller, riskier companies by offering a tax incentive to investors. For example, it benefits new start-ups in high-tech sectors such as IT bioscience. Since 1994, about £7 billion from private investors has been contributed to qualifying companies. The Government are building on the success of the scheme with changes in this Finance Bill and in the Bill next year that will increase the incentive for people to invest in smaller companies, helping them to establish and grow. The hon. Member for Hayes and Harlington wants a report on the impact of the scheme and the number of jobs created. Information on the cost of EIS and the number of investors claiming relief is available on the HMRC website. About 10,000 individuals invested through the scheme in 2008-09. HMRC does not collect data on the number of jobs created or the outcome for companies. Doing so would create an additional burden on the taxpayer and invested companies at a time when the Government are seeking to minimise the compliance and administrative burdens resulting from the tax system, particularly on small businesses.