§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer what plans he has to increase research and development tax credits for large firms. [159670]
§ Mr. TimmsThe Government have already introduced an R&D tax credit for smaller firms, in order to address the particular difficulty that these firms face in accessing capital to invest in innovation and R&D. In order to complement this measure and further to improve the UK's innovation performance, the Government have published a consultative document, "Increasing Innovation", which sets out the Government's proposals for a new tax credit to encourage R&D among larger firms and consults on the design of such a measure.
The consultation document was published at the time of Budget 2001 and can be found on the Inland Revenue internet site at the following address:
www.inlandrevenue.gov.uk/consult new/index.
§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer what plans he has to increase support for near-market high-technology research and development, with particular reference to technology demonstration projects designed to prove concepts and to reduce technical and financial risk. [159672]
§ Mr. TimmsThe Government have in place a range of measures aimed at enhancing the innovative capacity of the UK through investing in, facilitating and regulating innovation and R&D, as set out in the 2001 White Paper on enterprise, skills and innovation, "Opportunity for all in a world of change".
An R&D tax credit for small firms was introduced in April of last year, and all companies are entitled to an immediate 100 per cent. tax allowance for capital investment in R&D. In addition, the Government published a consultation document in March 2001, entitled "Increasing Innovation", which sets out the Government's proposals for a new tax credit to encourage R&D and innovation among larger firms and consults on the design of such a measure.