Select committee: Business, Innovation, Science and Trade Committee
Conclusion 19
15th Report – Small business strategy
Published 11 Feb 2026
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Small business strategy All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Limited diffusion of productivity enhancing technologies is one of the primary causes of the UK’s sluggish productivity growth. Investment in R&D significantly boosts productivity. However, the administration of the 72 UK’s generous R&D tax credit system is limiting uptake amongst SMEs. The Government is right to recognise that the system requires reform, but larger-scale changes are needed to truly increase small business R&D investment. This should be combined with a clear strategy for encouraging firms to take up technology, led by local realities and designed around specific business need. (Conclusion, Paragraph 90)
From: Business, Innovation, Science and Trade Committee, 15th Report – Small business strategy (HC 1057), 11 February 2026
Government response
No government response linked yet: deadline 11 April 2026, 204 days ago.