Chancellor accused of ‘gutting’ R&D tax credit scheme

Announced reforms “will result in tens of thousands fewer R&D intensive small businesses”, expert fears

Chancellor Jeremy Hunt has been accused by small businesses of “gutting” the R&D tax credit scheme and making a “mockery of plans for growth” after announcing “unsophisticated” reforms to reduce abuse and fraud in the system.

Setting out his plans for the year ahead in his autumn statement on 17 November, Hunt said he had heard “concerning reports of abuse and fraud” in R&D tax relief for small and medium-sized enterprises (SMEs).