Nicholas Soames: To ask the Secretary of State for Business, Innovation and Skills what plans he has to increase research and development expenditure by business enterprises. [136519]

Mr Willetts, Minister for Universities and Science: The Government is encouraging the increase of research and development (R&D) expenditure by business through a range of measures, including R&D tax credits and the programmes delivered by the Technology Strategy Board.

R&D tax credits are the single largest Government support for business investment in R&D. In the year ending March 2011 claims totalled £1.1 billion on expenditure of £10.9 billion.

The rate of tax relief available through the small and medium-sized enterprise (SME) R&D tax credit was raised to 225% from April 2012, making it among the most competitive regimes in the world, which is likely to further incentivise companies to invest in R&D. The Government believes that the Above the Line (ATL) credit being introduced on 1 April 2013 for large companies will be effective in influencing R&D investment decisions and help to increase the overall level of R&D activity in the UK.

The Technology Strategy Board is the Government's prime channel for supporting business-led technology innovation. It delivers a range of programmes in support of businesses undertaking research and development including Collaborative R&D, Smart and Knowledge Transfer Partnerships.

The Technology Strategy Board also provides opportunities for innovative businesses through the growing network of Catapult centres. Since June 2007 the Technology Strategy Board has provided £960 million in support for businesses across the UK ranging from pre start-up, start-up and early stage micro businesses, to large multi-nationals.

In addition, we have taken a number of further actions which are likely to increase business expenditure on R&D including: the introduction of an Innovation Vouchers programme, additional support to help companies access venture capital, increased investment in the Small Business Research Initiative, and the new UK Research Partnership Investment Fund (UK RPIF), which will secure over £1 billion support for the development of new research facilities and partnerships between universities, businesses and charities.

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