Committee publication · Special Report · 27 January 2026 · HC 1640

8th Special Report - Female entrepreneurship: Government Response

Summary

This is the Government's formal response to the Women and Equalities Committee's October 2025 report on female entrepreneurship. The Government outlines its position on 17 Committee recommendations spanning finance access, funding ringfencing, investment transparency, and support infrastructure. It accepts some recommendations in principle, partially addresses others through existing initiatives, and rejects specific proposals including a dedicated Female Enterprise Investment Scheme and mandatory venture capital reporting.

Key findings

Government rejects FCA mandate for venture capital firms to report gender-disaggregated investment data, citing disproportionate burden and misalignment with its streamlining agenda.
Innovate UK commits to 50% women assessors on evaluation panels and expanded women-focused funding, but stops short of committing to 30–40% ringfenced funding targets requested by the Committee.
British Business Bank highlights £30m anchor investment in Women Backing Women Fund of Funds and expanded angel investor programmes, but does not formally accept ringfencing targets or gender-balanced committee requirements.
Government declines to create a dedicated Minister for female entrepreneurship or standalone Female Entrepreneurship Strategy, arguing women-led businesses should be 'embedded in everyone's agenda' rather than siloed.
Government rejects Enterprise Investment Scheme (EIS) age-limit removal, asserting that current 7-year threshold appropriately targets early-stage companies most affected by market failures.

Government position

Mixed acceptance. Government accepts the ambition to support female entrepreneurship and welcomes Committee engagement, but rejects three core recommendations: (1) a dedicated Female Enterprise Investment Scheme with differential tax rates (fiscal and subsidy-control concerns); (2) FCA-mandated venture capital gender reporting (disproportionate regulatory burden); (3) EIS age-limit removal (risks displacing investment from early-stage firms). It partially accepts recommendations for improved data transparency and inclusive assessment, pointing to ongoing initiatives (Invest in Women Taskforce £635m fund, Innovate UK Women in Innovation Programme, British Business Bank strategic priorities) as fulfilling the Committee's intent via mainstreamed rather than siloed approaches.

Tone

Procedural

Topics

gender-equalityentrepreneurshipbusiness-financetax-policypublic-procurement

Key actors

Women and Equalities Committee, Department for Business and Trade, British Business Bank, Innovate UK, Financial Conduct Authority, Invest in Women Taskforce, Lord Jason Stockwood MP, Blair McDougall MP

Notable line

“We believe this collective commitment is stronger than appointing a singular Minister and creating a separate strategy …”

Key Quotes

“We would like to thank the Women and Equalities Committee for its dedication to female entrepreneurship through its research and publication of its report.”
— Lord Jason Stockwood MP and Blair McDougall MP · Opening of the Government Response letter

“The FCA does not request reporting from venture capital firms, or other alternative investment fund managers (AIFMs), in relation to deals undertaken.”
— Government (Department for Business and Trade) · Explanation for rejecting FCA mandate for gender-disaggregated investment reporting

“Women are central to unlocking growth for the UK economy and Ministers welcome the Committee's ambition to amplify this further. That is why this Government is proud that several Ministers, including the Chancellor, are strong champions for women-led businesses.”
— Government (Department for Business and Trade) · Response to Recommendation 6 on dedicated Minister for female entrepreneurship

“Expanding the schemes to larger, more mature companies would risk displacing investment away from these early-stage companies.”
— Government (Department for Business and Trade) · Rationale for rejecting EIS age-limit removal

“Since its inception in 2016, the programme has invested over £11 million in more than 200 women innovators and built a vibrant network of 11,000 women business leaders.”
— Innovate UK (via Government Response) · Innovate UK Women in Innovation Programme track record

“… the Bank announced 2 an additional £30m anchor investment in the Invest in Women Taskforce's Women Backing Women Fund of Funds, which will broaden the diversity of decision-makers and help channel more capital to diverse founders.”
— British Business Bank (via Government Response) · Recent British Business Bank investment commitment to female entrepreneurship

“Creating an additional scheme with targeted differential rates for particular groups of businesses would raise complex design and compliance issues which would need to be examined carefully.”
— Government (Department for Business and Trade) · Reason for rejecting Female Enterprise Investment Scheme proposal

View original document →

Source · parliament.uk record ↗