John McDonnell would look to reform or scrap a £1bn tax relief that was initially designed by the previous Labour government as a means of promoting innovation in companies, including in the pharmaceutical industry.
The shadow chancellor said the so-called patent box, which boosts profits from patented innovations by halving the rate of corporation tax due to 10%, was a “potential tax loophole with limited impact on research”.
McDonnell said the benefit was enjoyed mainly by large corporations and was not proven to drive up research. He proposed using the savings to set up a fund for Alzheimer’s research.
You can see why it attracts of course.
A tax break allows us to use the market and its associated incentives to sort through what might produce the best result.
A fund allows John McDonnell to spend the money as he sees fit.