Written questions by Anderson.

What steps her Department is taking to support businesses in offering employee share schemes.

The Government offers four tax-advantaged employee share schemes, which all enable employers to offer their employees tax-advantaged shares or share options in their business. These are Save as You Earn (SAYE), Share Incentive Plan (SIP), Enterprise Management Incentives (EMI), and Company Share Option Plan (CSOP). These schemes are popular, generous and internationally competitive. A call for evidence on SAYE and SIP ran from June to August 2023. It sought views on whether the schemes are meeting their policy objectives and opportunities to improve and simplify them. The Government is considering the responses to the call for evidence, and is grateful to those who took the time to respond. In 2021-22, a review of the EMI scheme found that the scheme remained effective at achieving its policy aims, including employee retention. The review was expanded to consider if CSOP should be reformed to further support companies as they grow beyond the scope of EMI. Following this report, CSOP limits were expanded from April 2023. The Government keeps all tax reliefs under review, to ensure they continue to meet their policy objectives in a way that is fair and effective. HMRC release annual statistics on the tax-advantaged employee share schemes, which can be found at GOV.UK here: https://www.gov.uk/government/statistics/employee-share-scheme-statistics

What recent assessment she has made of the effectiveness of (a) Company Share Option Plans, (b) Save As You Earn and (c) Share Incentive Plans in encouraging employee ownership.

The Government offers four tax-advantaged employee share schemes, which all enable employers to offer their employees tax-advantaged shares or share options in their business. These are Save as You Earn (SAYE), Share Incentive Plan (SIP), Enterprise Management Incentives (EMI), and Company Share Option Plan (CSOP). These schemes are popular, generous and internationally competitive. A call for evidence on SAYE and SIP ran from June to August 2023. It sought views on whether the schemes are meeting their policy objectives and opportunities to improve and simplify them. The Government is considering the responses to the call for evidence, and is grateful to those who took the time to respond. In 2021-22, a review of the EMI scheme found that the scheme remained effective at achieving its policy aims, including employee retention. The review was expanded to consider if CSOP should be reformed to further support companies as they grow beyond the scope of EMI. Following this report, CSOP limits were expanded from April 2023. The Government keeps all tax reliefs under review, to ensure they continue to meet their policy objectives in a way that is fair and effective. HMRC release annual statistics on the tax-advantaged employee share schemes, which can be found at GOV.UK here: https://www.gov.uk/government/statistics/employee-share-scheme-statistics

What proportion of Enterprise Investment Scheme funding was provided to companies based in Milton Keynes and Buckinghamshire in each of the last five financial years.

HMRC publish national statistics for the Enterprise Investment Scheme (EIS) every year. HMRC’s most recent published statistics are for the 2022 to 2023 tax year. HMRC publish statistics outlining regional investment, but this is not broken down further. Information about EIS funding in the South East can be found in these statistics publications. [1] [ 1 ] Enterprise Investment Scheme, Seed Enterprise Investment Scheme and Social Investment Tax Relief: May 2024 - GOV.UK

What assessment her Department has made of the impact of (a) Venture Capital Trusts, (b) the Enterprise Investment Scheme, (c) the Seed Enterprise Investment Scheme and (d) the Social Investment Tax Relief on economic growth in the last five fiscal years.

Growth is the central mission of the Government, and investment is a vital part of addressing the growth challenge. The venture capital schemes are a key part of this. The venture capital schemes were evaluated in 2022, and these evaluations were published on gov.uk. [1] The evaluations found that the schemes were well targeted to address the market failure which makes it difficult for early-stage, high-risk companies to secure the investment they need. SITR expired in April 2023. [1] Evaluation of Venture Capital Schemes - GOV.UK

What assessment her Department has made of the potential contribution of the Mansion House compact on levels of pension investment.

The Mansion House Compact is a voluntary industry-led initiative with eleven signatories to secure better outcomes for defined contribution (DC) savers by increasing pension investment into unlisted equity. The ambition is to allocate at least 5% of the DC default funds to unlisted equities by 2030 and increase the proportion of UK pension and other relevant investments in unlisted equities. The Government continues to monitor progress on the Mansion House commitments in collaboration with the Association of British Insurers (ABI). An update from the ABI suggests that signatory pension firms are making progress on these ambitions. The ABI’s latest publication highlights that firms have laid strong foundations to implement the commitment of allocating 5% of DC default funds to unlisted equities by 2030. Ten of the eleven signatories to the compact have taken steps to establish or expand their expertise in unlisted equity investment. Furthermore, eight of the eleven signatories have begun to develop specific solutions to enable increased unlisted equity investment. The Government is also taking further proactive steps to increase investment in innovative businesses. In November, the British Business Bank completed its £250m Long Term Investment for Technology and Science (LIFTS) investment alongside £250m from Phoenix Group with Schroders Capital. The £500m investment vehicle will invest in UK late-stage companies focused on technology and science, with 20% of the fund expected to be invested in life sciences. Additionally, two UK pension funds, Aegon UK and NatWest Cushon, have agreed to collaborate with the British Business Bank on launching the British Growth Partnership to crowd-in institutional investment into venture capital funds and innovative businesses here in the UK.

How many companies that received funding through the Enterprise Investment Scheme in the each of the last five financial years were in their first year of trading.

The Enterprise Investment Scheme (EIS) offers tax reliefs for investors investing into companies below a certain age. This ensures it is targeted towards the most early-stage, high-risk companies, who face the greatest struggle securing the investment they need to grow and develop. The initial investment into a company must occur within 7 years of the company’s first commercial sale, or within 10 years for knowledge intensive companies (KICs). HMRC does not publish statistics on the age or length of trading time for companies receiving investment through the Enterprise Investment Scheme (EIS).

What assessment she has made of the potential impact of new UK-China over-the-counter bond trading on future trends in the UK's economic growth rate.

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation. The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy. In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

With reference to her Department's policy paper entitled 2025 UK-China Economic and Financial Dialogue: fact sheet, published on 11 January 2025, what steps the Government plans to take to help implement new (a) commercial licences and (b) quota allocations for UK firms in China.

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation. The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy. In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

What assessment she has made of the potential impact of China's commitment to issue an inaugural offshore sovereign green bond on the competitiveness of the domestic financial sector.

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation. The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy. In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

What steps the Government plans to take to help asset management firms access the Chinese market.

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation. The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy. In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

Whether she plans to take steps to support greater supervisory data sharing between UK and Chinese financial regulators.

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation. The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy. In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

What assessment she has made of the potential impact of recent trends in the level of retail investment on economic (a) growth and (b) resilience.

The Government wants to see more consumers participate in capital markets and benefit from the long-term financial security and returns that investing can provide. The Financial Services Growth & Competitiveness Strategy call for evidence, which closed on 12 December, identified that increasing retail participation in capital markets could support long-term sustainable growth within the sector and the wider economy. The call for evidence welcomed further evidence on how to improve consumer engagement with investing, and the Government is considering the feedback provided. The Government is already taking forward work to improve the information available to retail investors to help with their decision-making. This includes reforms to the UK’s retail disclosure regime and exploring options to expand the availability of support through the joint Government and FCA review of the boundary between financial advice and guidance.

What information her Department holds on the total value of investments in (a) cash, (b) stocks and shares, (c) innovative finance and (d) lifetime ISAs in each of the past five tax years, broken down by investors'

Information on the total value of ISA subscriptions, the total market value of ISAs, and the number of ISA holders and subscribers broken down by income bands is available in HMRC’s Annual Savings Statistics.https://www.gov.uk/government/collections/annua...

What information her Department holds on the total market value of (a) cash and (b) stocks and shares ISA holdings in each of the past five tax years, broken down by investor income bracket.

Information on the total value of ISA subscriptions, the total market value of ISAs, and the number of ISA holders and subscribers broken down by income bands is available in HMRC’s Annual Savings Statistics.https://www.gov.uk/government/collections/annua...

What criteria her Department plans to use to assess the effectiveness of the digital gilt instrument pilot.

This pilot would allow us to make more informed decisions on Distributed Ledger Technology’s (DLT) potential future application to wider government debt issuance. Demonstrating feasibility on a government bond issuance will also support the private sector...

What steps her Department is taking to manage potential risks associated with distributed ledger technology during the pilot digital gilt instrument issuance.

This pilot would allow us to make more informed decisions on Distributed Ledger Technology’s (DLT) potential future application to wider government debt issuance. Demonstrating feasibility on a government bond issuance will also support the private sector...

Whether her Department is taking steps to involve private sector firms in developing distributed ledger technology for the digital gilt instrument pilot.

This pilot would allow us to make more informed decisions on Distributed Ledger Technology’s (DLT) potential future application to wider government debt issuance. Demonstrating feasibility on a government bond issuance will also support the private sector...

What the role of the (a) Bank of England and (b) Financial Conduct Authority will be in regulatory oversight of the digital gilt instrument pilot.

This pilot would allow us to make more informed decisions on Distributed Ledger Technology’s (DLT) potential future application to wider government debt issuance. Demonstrating feasibility on a government bond issuance will also support the private sector...

Whether her Department plans to bring forward proposals to block public listings on national security grounds.

The previous government consulted on a power to block listings on national security grounds and published a summary of responses to this consultation in December 2021. The government keeps all policy under review.

What steps her Department plans to take to help incentive retail investment in domestic public companies.

The Government is committed to reinvigorating our capital markets to deliver growth across the UK and is pursuing ambitious reforms to make our markets even more competitive. This is why we supported the implementation of the Financial Conduct Authority’s...