Corporate UK tax breaks to cost £20bn more than they generate, study finds

Exclusive: Relief rolled out in 2023 will cost 30bn in taxes but spur only up to 10.5bn investment, analysis shows

Corporate tax breaks designed to encourage companies to buy new machinery and equipment are set to cost the taxpayer around three times as much as they generate, according to analysis of official forecasts.

The tax relief on new plant and machinery announced by Jeremy Hunt as chancellor in 2023 was billed as a major part of the solution to the problem of Britain's low economic productivity. Labour supported the measure at the time and have now promised to make it permanent.