The Tories have ditched plans to scrap tax incentives for research and development if they win the general election expected on 6 May.

Party leader David Cameron welcomed a report proposing the u-turn from opposition industry 'Czar' Sir James Dyson on how to rebalance the UK economy away from over-dependence on the City.

Cameron said the Dyson Report "represents an exciting and ambitious step forward in our desire to make Britain Europe's leading generator of new technology".
Shadow chancellor George Osborne has previously proposed scrapping most of the corporation tax breaks in order to fund a reduction in the headline rate of tax on business.

But a Conservative spokesman said a Tory government "will keep R & D tax credits" refocused along lines proposed by Dyson, who urged that when public finances allow the rate of the relief should be increased to 200%.

The beneficiaries would be "high tech companies, small businesses and new start-ups "in order to stimulate a new wave of technology".

Dyson also proposed increasing the generosity of the Enterprise Investment Scheme providing relief for "angel" investors.

Further reading:

Read the Tories' statement on Sir James' report

Don't take an R&D R&R