The UK Government has said it is ready to intervene if investment in female entrepreneurs “shows no sign of improvement”, after a blistering parliamentary report laid bare the barriers women face in access to funding and support networks.

MPs on the Women and Equalities Committee (WEC) found that the “tiny fraction” of public and VC investment going to female founders is making it impossible for these businesses to scale, and risking £310 billion in wider economic growth.

Despite years of reviews and high‑profile initiatives, the Committee warned that conditions for female‑led firms are getting worse, a failure that lies with both government and private investors.

The WEC’s report branded it ‘deeply disappointing’ that neither the government’s Industrial Strategy nor its SME Strategy contained specific measures to support female-led businesses, and that venture capital firms must do more to deliver investment on an equitable basis.

Among the Committee’s recommendations, it called on the government to publish a female‑entrepreneurship strategy within twelve months, to be overseen by a dedicated minister, and for the FCA to mandate all registered VC firms report the deals going to female-led firms.

It also said the British Business Bank should lift the share of equity finance going to female entrepreneurs from 2% to 10% by 2030, and that both the Bank and Innovate UK must guarantee that no less than 30% of their financing goes to female‑led firms.

Pushing back, the government rejected many of the Committee’s recommendations, citing concerns over complexity and regulatory burdens, saying that the “greatest successes have come from an action-based approach” through collaboration.

“This Government is proud that several ministers, including the Chancellor, are strong champions for women-led businesses,” the response said. 

“We believe this collective commitment is stronger than appointing a singular minister and creating a separate strategy, as women-led businesses should be embedded in everyone’s agenda and their interests should be integrated into mainstream policies rather than being seen as distinct from the wider economy.”

The government pointed to additional funding being made available to the Invest in Women Taskforce and British Business Bank, as well as major initiatives such as the £400 million Investor Pathways Capital scheme and a £100 million commitment to female fund managers.

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The government also drew attention to existing initiatives from Innovate UK, including an increase in funding for its Women in Innovation Awards, and ongoing work to remove barriers to female entrepreneurs’ access to funding.

While the Government’s response details some welcome efforts to make progress in key areas, it is disappointing that measures to drive behavioural change in venture capital, such as improved transparency and accountability and the use of tax incentives, have been rejected,” said Sarah Owen MP, chair of the Women and Equalities Committee.

“Measures to address gender inequality in business have failed to shift the dial on investment or growth. It is right that the Government is not ruling out future interventions if the level of venture capital investment in female entrepreneurs shows no sign of improvement.”