Following lobbying efforts from the several coalitions in the tech industry, the Labour government has announced today that it will extend tax relief for early-stage startup investment for ten more years.

The previous government had assured the startup community that it would keep its schemes – the Venture Capital Trust (VCT) scheme and the Enterprise Investment Scheme (EIS) – which were set up to inspire investment in startup companies via tax breaks.

Each scheme offers tax relief on capital gains acquired through investments to small, early-stage companies – a scheme startups in the UK argue is vital to their survival.

However, following the general election in July, a shadow of doubt was cast over the security of the scheme.

The new Treasury announced that both schemes would be extended for ten years, until April 2035.

“Our entrepreneurs are a driving force for economic growth, creating jobs and boosting investment,” said exchequer secretary to the Treasury, James Murray.

“Championing schemes with proven success is vital in our mission to support the innovators to help rebuild Britain and make every part of the country better off.”

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Startups, which will likely be relieved by the news, were also key in advocating for the schemes’ continuation.

“So much of the growth of startups across the UK over the past decade has been down to these schemes,” said Dom Hallas, executive director of the Startup Coalition, as reported by UKTN.

“Now the uncertainty around their future is over and we’ve finally got them extended they’ll be doing the same for the decade to come.”

Back in May, and prior to the UK general election, the Scottish Government introduced its a new set of support packages for Scottish startups.