Local MP Alan Mak has urged the Labour Government to reverse its cut to tax relief on the investment companies behind start-ups.
He said cutting relief on Venture Capital Trusts (investment companies that back UK start-ups with growth potential) had resulted in them scaling back expansion and cutting staff.
Mr Mak spoke in the House of Commons and explained how a recent industry survey had revealed that 62 per cent of VCT founders were rethinking growth plans in response to the Chancellor's decision.
Meanwhile 45 per cent were reducing headcount and 25 per cent had indicated they might move their headquarters abroad.
He asked Economic Secretary to the Treasury Rachel Blake: "Will the Government reverse the cut, or will the Chancellor's legacy to Britain's tech sector be lower growth, fewer jobs and lasting damage?"
Mr Mak previously accused the Labour Government of squandering Britain's role as a world tech leader.
On a visit to London Tech Week to meet and support some of the entrepreneurs and investors contributing to our economy, he said the previous Conservative Government turned Britain into the world's third-biggest AI eco-system after the US and China.
He said this produced more unicorns - private start-up companies that have reached a valuation of at least $1bn - than Germany and France combined.
Mr Mak added: "Labour are squandering Britain's role as a world tech leader.
"Being strong in tech is vital for our community and our country, but Labour's taxes and red tape are a threat to Britain's future."
He vowed to continue his campaign to help turn Britain into the best place in the world to start, grow and scale up a business.
