Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the value was of (a) R&D expenditure and (b) R&D tax credits as (i) payable credits and (ii) deductions to Corporation Tax for UK life science SMEs SIC codes (A) 21100, (B) 72110, (C) 72190 and (D) 86900 in each of the last five years.
Answered by Jesse Norman
HMRC publish annual statistics on Research & Development (R&D) tax reliefs: https://www.gov.uk/government/statistics/corporate-tax-research-and-development-tax-credit
HMRC do not break down the statistics on R&D tax relief claims into the detailed sub-codes mentioned in the question, and this information would only be available at disproportionate cost.
Support for businesses through R&D tax reliefs rose to £3.7 billion in 2015-16 (£1.8bn for the SME scheme and £1.9bn for the RDEC), up by almost a quarter from the previous year, supporting almost £29 billion of R&D expenditure.
Within the ‘Professional, scientific & technical’ sector in 2015-16, there were 6,980 claims in the SME scheme worth £400m and SMEs also made 770 claims in the RDEC scheme worth £45m.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the proposed cap on research and development tax credits for SMEs in the life sciences sector; and what steps he is taking to ensure that companies in the Cambridge area are not affected by the cap.
Answered by Jesse Norman
Research and Development (R&D) tax reliefs, including the small or medium-sized enterprise (SME) scheme, support businesses to invest and are a core part of the Government’s support for innovation.
Budget 2018 announced a cap on the payable tax credit element of the SME tax relief scheme of three times the company’s total PAYE and NICs liability for that year, to help prevent identified fraud and abuse of the scheme.
The Government consulted between 28 March and 24 May 2019 on how the cap will be applied so as to minimise any impact on genuine businesses. The responses to that consultation, including those from representatives in the life sciences sector, are being analysed.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the environmental impact of freezing fuel duty since 2010.
Answered by Robert Jenrick
The consumption of fuel is highly price inelastic. Therefore, fuel duty freezes only have a marginal impact on the amount of fuel purchased, and therefore limited impact on emissions.
Households spend a significant amount of their total spending on transport fuels, and fuel costs are a major factor in helping the competitiveness of British businesses. Duty on fuel remains at 57.95ppl. The government is also taking action to reduce emissions and improve air quality through Vehicle Excise Duty and the Company Car Tax system.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the BioIndustry Association report entitled Confident capital: backing U.K. biotech, published on 1 January 2019; and what steps he is taking to help ensure that 2019 is a successful year for the U.K. biotechnology sector.
Answered by Robert Jenrick
We welcome the BioIndustry Association report, which the Government launched at the BioIndustry Association’s event, Strategic Technologies in Life Sciences: The Future is Now, attended by myself on 24 January 2018. The Government is proactively supporting the UK’s strong life sciences sector.
The Government has published two Life Sciences Sector Deals, which are supported by the Government’s commitment to delivering the biggest increase in R&D investment for 40 years. Since Autumn 2016, Government has committed an additional £7 billion in R&D by 2021-22, demonstrating clear progress towards the Government’s ambition to raise investment in R&D in the economy to 2.4% of GDP by 2027.
At Budget 2017 the Government also announced a 10-year action plan to unlock over £20bn to finance growth in innovative firms, including life science companies.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the funding made available to underwrite successful bids by UK organisations to (a) Horizon 2020 and (b) other competitive EU grant programmes is planned to be redistributed from existing UK research budgets in the event that the UK leaves the EU without a deal.
Answered by Elizabeth Truss
The HMG guarantee covers successful competitive bids made before the UK leaves the EU, for the lifetime of the project. This guarantee was extended in July 2018 to cover all EU projects agreed before the end of 2020, where the UK will be eligible to participate as a third country. If the UK leaves the EU next year without reaching an overall withdrawal agreement, HM Treasury will make funding available to departments to cover projects under the guarantee, which includes Horizon 2020. This funding will be additional to existing departmental budgets. Relevant departments will then be responsible for allocating this funding to UK organisations.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the planned timeframe is for the distribution of funds to UK organisations to cover the competitive EU grant funding which has been guaranteed by his Department in the event of the UK leaving the EU without a deal.
Answered by Elizabeth Truss
If the UK leaves the EU without a deal, the Treasury will make funding available to departments next year to cover projects under the HMG Guarantee. Relevant departments will then allocate this funding to UK organisations.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the funding allocated by the EU to underwrite successful bids by UK organisations to competitive EU grant programmes, including Horizon2020, will be funded from (a) UKRI’s annual budget allocation or (b) additional funding allocated by his Department in the event that the UK leaves the EU without a deal.
Answered by Elizabeth Truss
If the UK leaves the EU next year without a deal, HM Treasury will make additional funding available to departments to cover projects under the HMG Guarantee, which includes Horizon 2020. Relevant departments will then be responsible for allocating this funding to UK organisations.Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the representations in the East of England APPG Submission to Autumn Budget 2018; and if he will make a statement.
Answered by Elizabeth Truss
HM Treasury receives representations from a range of stakeholders ahead of the Budget. We welcome all Budget submissions, particularly from organisations like the East of England APPG, who have unique insight into local strengths and challenges.
While it would not be appropriate to respond in detail to individual proposals, all Budget representations submitted during the designated window will be carefully considered.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department has allocated additional funding for the Windrush generation taskforce.
Answered by Elizabeth Truss
The Home Office has already established and resourced the Windrush taskforce. This dedicated team is already helping the people affected evidence their right to be here and to access the necessary services. The Home Office is continuing to work through the detail of any other potential costs to the department.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department has allocated additional funding for the Windrush generation taskforce.
Answered by Elizabeth Truss
The Home Office has already established and resourced the Windrush taskforce. This dedicated team is already helping the people affected evidence their right to be here and to access the necessary services. The Home Office is continuing to work through the detail of any other potential costs to the department.