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Written question asked by Liam Byrne (Labour) on Tuesday, 10 December 2024, in the House of Commons. It was due for an answer on Monday, 16 December 2024 (named day). It was answered by James Murray (Labour) on Monday, 16 December 2024 on behalf of the Treasury.

Research: Tax Allowances

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of R&D tax reliefs on (a) business investment and (b) economic growth.

Answer

The Government recognises the important role that research and development (R&D) plays in driving innovation and economic growth as well as the benefits it can bring for society.

Overall, R&D reliefs will support an estimated £56 billion of business R&D expenditure in 2029-30, a nearly 20 per cent increase from £47 billion in 2022-23.

The latest evaluations (“Evaluation of the research and development tax relief for small and medium-sized enterprises” and “Evaluation of the research and development expenditure credit”) were published in 2020 by HMRC and can be found on the gov.uk website. In the Corporate Tax Roadmap published at Autumn Budget, the government committed to periodically evaluating the R&D reliefs to ensure they are as effective as possible and underpinned by a credible, up to date evidence base.

Secondary information

Type
Written question
Reference
18889
Session
2024-26
Subjects
Investment Economic growth Research Tax allowances
Link
View this Written question on www.parliament.uk