The tax relief on new plant and machinery announced by Jeremy Hunt as chancellor in 2023 was billed as a key part of the solution to the problem of Britain's low economic productivity.
Labour supported the measure at the time and has now promised to make it permanent.
An analysis by the thinktanks Demos and Common Wealth has found that the measure, known as full expensing, will cost nearly £30bn in lost tax revenue and spur a maximum of £10.5bn in fresh investment.
The Treasury says the move will generate £15bn in investment, still only half of what it has cost the taxpayer.
Andrew O'Brien, the policy director of Demos, said: "Full expensing is not the silver bullet to boost business investment that some had hoped."
Denne historien er fra September 23, 2024-utgaven av The Guardian.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 23, 2024-utgaven av The Guardian.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Parry: Premier League would be 'sterile' without EFL
Rick Parry has accused the Premier League of undervaluing the football pyramid, arguing that without the \"variety and competition\" that come from relegation and promotion the game would become \"sterile\".
Official review: Coote faces FA investigation as Webb breaks silence on video
The Football Association has launched its own investigation into the behaviour of the referee David Coote after remarks he made about Jürgen Klopp in a video that surfaced online this week.
Match-by-match: Coote's Liverpool games as an official
Referee who has been caught on video in a foul-mouthed tirade against Jürgen Klopp officiated 21 Liverpool games. Andy Hunter takes a look at the decisions in each one
Wretched, haunted but human: a referee shaped by modern football
Is it really a surprise that an official or someone similar should end up glassy-eyed and spitting toxins on a sofa?
Hall's audition adds intrigue to England's Nations League finale
In-form Newcastle defender can show Thomas Tuchel he can be the solution to perennial problem on the left
'It's about robust planning, proper financial control'
is about \"preventing the shocks\" that have disrupted the sport in recent years.
'People are going to see women's boxing at its very best'
The super-lightweight world champion Katie Taylor says her rematch against Amanda Serrano in Texas, as the main support act to Tyson v Paul, will be something special
Blindkilde Brown and Fujino help City avoid slip up
Manchester City maintained their 100% start in the Women's Champions League group stage as second-half goals from youngsters Laura Blindkilde Brown and Aoba Fujino were enough to beat a determined Hammarby side.
Players must cope with extra scrutiny, says Lewis
The England coach, Jon Lewis, said his players experienced a \"sharp learning curve\" about perception management in the fallout from their disastrous group-stage exit in last month's T20 World Cup.
No input from Jones in England's plan to upset Springboks
England will not be benefiting from the insider knowledge of their former Springbok assistant coach Felix Jones this weekend after it emerged that neither their players nor key staff members have been in contact with the Irishman, still supposedly employed remotely by the Rugby Football Union (RFU).
