BDO: Small and mid-cap market ‘hamstrung’ by government

SMALL AND MID-CAP quoted companies are being ‘hamstrung’ by the government’s refusal to allow their shares to be included in ISAs.

According to the latest QCA/BDO Small & Mid-Cap Sentiment Index – a joint initiative from BDO and the Quoted Companies Alliance – calls for AIM and PLUS-quoted shares to be included in ISAs are falling on deaf ears.

Small and mid-cap companies are calling for chancellor George Osborne to implement the changes, which they argue would provide incentives to shareholders to adopt a longer-term approach to investment, in the 21 March Budget.

However, the government refuses to introduce the measure with the Treasury last month rejecting the proposed reform.

“The early signs are that policymakers are engaged in rhetoric – asking questions and not listening to the answers. This leaves small and mid-cap companies hamstrung by a one-size-fits-all approach that hinders their growth prospects and hampers investment; not what businesses in the UK need at the moment,” said Scott Knight, partner at BDO.

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