§ Rob MarrisTo ask the Chancellor of the Exchequer what financial measures the Government have implemented since 1997 to stimulate research and development, and production, in the sectors of medical technology and of pollution control. [44493]
§ Mr. BoatengIn Budget 2000 the Government introduced the R&D tax credit for small and medium sized companies. In Budget 2001 consultation was announced on two further measures supporting R&D
579Wextending R&D tax credits to all companies; anda tax credit for research into drug and vaccines for killer diseases——TB, malaria and some strains of HIV/AIDS——primarily affecting people living in developing nations.The Chancellor confirmed on 25 March that a wider volume based R&D tax credit, applying to spending on or after 1 April 2002, would be introduced.
Budget 2001 introduced enhanced capital allowances for investment in energy efficient technologies, allowing companies to immediately write off the full cost of qualifying investments against taxable profit. In Pre-Budget Report 2001 the Government announced proposals under the Green Technology Challenge to introduce further enhanced capital allowances to tackle climate change and improve air quality, and to reduce water use and improve water quality.