Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the scope of investment allowances to include encouragement for investment in software, services and skills as well as conventional capital procurements.

The government is committed to supporting businesses in the UK to invest and improve productivity.

The government has introduced the Apprenticeship Levy and are committed to delivering 3 million apprenticeship starts in England by 2020. We have also announced the most ambitious post-16 reforms since the introduction of A levels 70 years ago.

The government wants the UK to be the best place to start and grow a digital business. As part of this we have announced £13 million worth of funding to create a private sector-led Productivity Council.

Revenue expenditure on provision of skills, services and software is normally fully tax deductible in the year it is purchased, receiving relief more quickly than expenditure eligible for capital allowances.

The government keeps all tax reliefs under review and any proposal for future changes to a relief must be assessed for its effectiveness, wider economic impact, ability to stand-up against abuse and the cost to the exchequer.