Schedule 12 - Tax relief for expenditure on research and development

Part of Finance Bill – in a Public Bill Committee at 6:15 pm on 21st May 2002.

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Photo of Mr Iain Luke Mr Iain Luke Labour, Dundee East 6:15 pm, 21st May 2002

The hon. Member for Arundel and South Downs made a valid point. I know from being involved in the all-party group on tyres, and from comments from the Chartered Institute of Taxation, that the tyre industry is wholly owned by companies outwith the UK, which is unfortunate given the UK's pioneering role. Given the complications of decisions on tax credits, the only thing that will save the industry is R and D credit. It will allow the industry to invest in high-quality techniques, which would beat off competition from the far east. The hon. Gentleman's points were pertinent. Will the Paymaster General bear in mind the tax credit issues that relate to the tyre industry?