Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 5.52 in the Autumn Statement, CP751, published on 17 November 2022, what assessment his Department has made of the potential impact of decreasing the SME credit rate from 14.5% to 10% on the number of SMEs conducting R&D.

The reform announced at Autumn Statement will ensure taxpayer’s money is spent as effectively as possible, it also improves the competitiveness of the RDEC scheme, and is a step towards a simplified, single scheme for all.

The reliefs are forecast to support £60 billion of R&D by businesses in 2027-28, a 60 per cent increase from 2020-21.