Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking with Cabinet colleagues to help increase opportunities for innovation in the economy.

The Government recognises that innovation is a key driver of long-term economic growth, higher productivity and improved living standards.

Public investment in research and development (R&D) will rise to £22.6 billion per year by 2029-30, supporting innovation across the government’s eight Industrial Strategy priority sectors.

The Government is also transforming the resources and capabilities of the British Business Bank, delivering a two-thirds increase in support for UK innovative businesses and increasing its overall financial capacity to £25.6 billion. With additional capital and greater flexibilities, the BBB will be able to continue delivering flagship programmes such as Start-Up Loans and the Nations and Regions Investment Fund.

To further incentivise innovation, the Government is maintaining generous rates in both the merged R&D Expenditure Credit (RDEC) scheme and the Enhanced Support for R&D Intensive SMEs. The RDEC rate of 20% represents the joint highest uncapped headline rate of R&D tax relief in the G7 for large companies. The R&D reliefs will support an estimated £56 billion of business R&D expenditure a year by 2029-30.

The Digital and Technologies sector plan sets out a vision for the UK to be one of the best places in the world for fast-growing technology businesses. In addition, the Government has accepted and is implementing all 50 recommendations of the AI Opportunities Action Plan, unlocking the full potential of AI.

The Digital and Technologies Sector Plan can be accessed here: https://www.gov.uk/government/publications/digital-and-technologies-sector-plan