MPs slam venture funding

THE government’s track record for investing in small businesses came under fire yesterday by the Committee of Public Accounts.

A report by the Committee said that the government’s management of its venture capital funding initiative for young businesses with prospects for growth needed improvement.

Some of the concerns listed by chairman Edward Leigh included a lack of prioritised objectives for the funds, the poor regional distribution of funding and the lack of published information on the performance of the funds up until December last year.

“This report confirms Labour’s woeful venture capital record. Their funds have made losses not returns and the taxpayer has rewarded fund managers for their failure,” said Shadow Business Secretary Ken Clarke.

The programme has 28 funds.