Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of (a) a financial assistance package for early-stage R&D companies in the (i) life sciences and (ii) other sectors that includes rapidly available grants for loss-making companies and (b) increasing the level of R&D tax-credits including in relation to the percentage of surrenderable loss repayable in cash during the covid-19 outbreak.

The government is committed to supporting innovative businesses to grow, as part of the strategy to increase economy-wide investment in R&D to 2.4% of GDP by 2027.

At the 2020 Budget, government announced it would increase public investment in R&D to £22bn by 2024-25. Detailed allocations of this funding will be set out in due course. Budget 2020 also announced the R&D Expenditure Credit rate would be increased to 13%, providing an additional £1bn over the next 5 years.

The government offers two R&D tax relief schemes which are internationally competitive. The government keeps all tax reliefs under review to ensure they remain well-targeted, and will continue to monitor whether further support for businesses is required through the tax system.

In response to the Covid-19 outbreak, the government has announced a significant package of financial support for businesses and employees. Further details of this package are available at: www.businesssupport.gov.uk