Oral Answers to Questions

Chi Onwurah Excerpts

Wednesday 15th March 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Across the country, our regions are home to thousands of brilliant science start-ups and spin-outs, but they are being hit by a Tory quadruple whammy: slashing R&D tax credits, leaving with them an average of £100,000 less to spend on research a year; a £120-million cliff-edge loss of European regional development funding; lack of access to capital—the UK has the lowest business investment in the G7; and continuing uncertainty over association with the £95-billion Horizon Europe, the biggest science fund in the world. Which of those barriers to growth for our innovative businesses will the Minister sort out today?

[George Freeman]

It is a great shame that the shadow spokeswoman is so determined to talk the UK down. The truth is that in the last 10 years, the life sciences sector has grown 1,000%. The north-east, where she is from, is driving that. I do not recognise that the UK sector is being held back in the way that she says, but the Chancellor will say more this afternoon about the tax and business environment. The reason that R&D tax credits are up so much is that our innovation economy has gone from 1.7% of GDP to 2.8%. That is a huge success over the last 10 years, and we are responsible for it.