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Shell

Answer

The Government are committed to ensure that we maintain and strengthen the UK's position as one of the most innovative economies in the world. We are absolutely determined to create the right conditions for business investment and growth in research and development and innovation, and we believe that international companies will be keen to take advantage of these conditions.To deliver on this we have focused on: creating the most competitive tax system in the G20 by cutting the main rate of corporation tax from 28% to 26% in April and by 2014 it will reach 23%--the lowest rate in the G7 and 5th lowest in the G20; making the UK the best place in Europe to start, finance and grow a business.The Government also have a range of policies supporting R and D including significant financial support for business investment, a supportive tax regime; a regulatory regime that is business friendly and modern infrastructure that enables the UK to be internationally competitive.The recently-published (December 2011) Innovation and Research Strategy for Growth builds on the UK's recognised strengths and sets out how the Government will work with business and the knowledge base to underpin private sector-led growth.For example, through the Technology Strategy Board (TSB) we will invest over £1 billion in business-led R and D over the current spending review period. By matching these public sector investments with UK and UK-based business, the TSB will have generated a £2 billion programme of investment in innovation in the period to 2011-15.We will continue to support investment in high-technology sectors. Over £200 million will be invested through the TSB to establish a network of elite technology and innovation centres, now branded as Catapults. These will commercialise new and emerging technologies in areas where there are large global market opportunities and a critical mass of UK capability to take advantage.We have also made significant improvements to the R and D tax credit. The rate for the SME scheme will increase to 225% from April, making it one of the most attractive such schemes in the world. We will also encourage large company research and development by making the R and D tax credit 'above the line' from April 2013.

Secondary information

Type

Written question

Reference

90764; 538 c978W

Session

2010-12

Subjects

Shell

Link

View this Written question on www.publications.parliament.uk