'Excellent' tax credits safe if Tories win general election

Published on Tuesday 9 March 2010 21:50

THE Tories have pledged to retain tax credits for research and development as a policy review led by Sir James Dyson declared them an "excellent" measure.

Reports suggested the credits could be culled by an incoming Conservative administration to pay for cuts in the rate of corporation tax – a key part of the opposition's business policy.

But the party insisted it would "simplify and refocus" the existing system in line with the recommendations of the billionaire vacuum cleaner tycoon's report.

Party leader David Cameron, who commissioned the Dyson review, hailed it as an "exciting and ambitious" blueprint for putting Britain at the forefront of new technologies.

Among other recommendations in the report – titled Ingenious Britain – is the creation of a high-profile prize for engineering, extra financial incentives for young people to study science and engineering and making the Enterprise Investment Scheme (EIS) more generous.

In his report, Sir James said lower corporation tax would be "prudent" as the economy recovers but backed tax credits as part of "extraordinary" actions needed to rebalance the economy.