Schedule 3
Finance (No. 2) Bill
12:45 pm
Rob Marris (Wolverhampton South West, Labour)
It is a pleasure to follow an entertaining speech by the hon. Member for Fareham. I say to my hon. Friend the Financial Secretary that I have some sympathy with new clause 5. [Interruption.] Before the hon. Gentleman gets too excited, I should say that the new clause is perhaps a little premature for the reasons to which he and my hon. Friend adverted in a previous debate.
The Red Book says, on page 62, paragraph 3.80:
“In ‘Supporting growth in innovation: next steps for the R&D tax credit’, published in...2005, government announced that HMRC would set up dedicated R&D units to handle all SME claims for tax credits. It is envisaged that these units will be fully operational across the country before the end of the year. At the same time, a statement of practice will be published presenting the standard of service and support that SMEs can expect from the new units.”
I understand that, at the end of the calendar year 2006, the dedicated SME claims units for R and D tax credits and statements of practice will be in place.
New clause 5 suggests a date of 1 March 2007 for the research to be done on the costs of claiming R and D tax credits. Understandably, we have a particular concern for SMEs. I am delighted that the Budget extended the number of employees from 250 to 500 in respect of the beneficial arrangements. However,1 March 2007 is a little bit early for a procedure or new way of doing things—including new support and so on—in respect of provisions that will be in place by the end of 2006. However, if the Government have not already included such provision in the Finance Bill next year, the hon. Gentleman might consider tabling a new clause similar to new clause 5.
I have sympathy with the hon. Gentleman’s approach. To echo the comments that have already been made, I say to my hon. Friend the Financial Secretary that we have to be careful that we do not have a wonderful tax regime that is too difficult for people to claim under and therefore does not boost R and D in the United Kingdom in the way that all hon. Members wish.