Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 December 2022 to Question 110697 on Research: Business, if he will publish the calculations for his Department's estimation that the total level of research and development-related business investment in the economy will remain unchanged; and whether that estimation is partly based on a projected increase in investment through the RDEC scheme.

As part of the ongoing R&D tax reliefs review, the Government is reforming the R&D tax reliefs to ensure taxpayer’s money is spent as effectively as possible, to improve the competitiveness of the RDEC scheme, and is a step towards a simplified, single RDEC-like scheme for all.

The Treasury has estimated the changes will also help to support fiscal sustainability by raising revenue and reducing fraud and error, without materially changing the levels of R&D expenditure over the forecast period. The OBR certified the package of measures at the Autumn Statement 2022 had no net material impact on the capital stock forecast.