A scheme designed to boost spending on research and development and boost the economy has cost more than £4bn in fraud and errors since 2020, according to HMRC’s annual report. The R&D tax credits scheme has been described as a "wild west" with dubious claims including a window-cleaning firm's method to hold a water bucket at height and adding vegan and gluten-free options to a pub menu. The estimated cost of fraud and error in the scheme from 2020-21 to 2023-24 is over £4.1bn. Labour hopes to raise £5bn by cracking down on tax fraud and non-compliance.
