Research and Development (Hansard, 15 June 2000)

§ Mr. Caborn

The Government are taking a number of significant steps to promote research and development among UK companies. Working closely with the Chancellor of the Exchequer, we have recently introduced an R&D tax credit for small and medium-sized companies which gives them 150 per cent. relief for the cost of staff and consumables used in R&D. The R&D tax credit will be supported by new Guidelines on R&D which will help companies of all sizes to benefit from Research and Development Allowances. We are also increasing the DTI Innovation Budget by some 20 per cent. over three years to nearly £230 million by 2001–02. This budget will fund a number of new and enlarged initiatives designed to drive forward a fundamental change in innovation performance in the UK. This includes for example the Smart scheme which supports R&D activities in private small and medium-sized companies and is being expanded and extended over the period 1999–2002, and the technology transfer scheme known as TCS, for which DTI is doubling its expenditure. Our aim is to improve the overall climate for investment in R&D and innovation. But the level of R&D investment by companies is for companies themselves to determine. DTI helps companies make an informed decision by providing a valuable source of information on UK and international R&D investment through the annual R&D Scoreboard.