Rachel Reeves pledged to fund schools and the NHS by cracking down on tax fraud—a proposal that seems fair. In theory…

Yet, in practice, Labour is targeting fraud on tax credits that benefit entrepreneurs, rather than say, widespread welfare fraud. In a bid to tackle alleged abuse of R&D tax credits (tax rebates for innovation spending), UK startups are now being told they must repay hundreds of thousands of pounds to HMRC after it decided claims were mistakenly issued. The move has left many SMEs fearing for their survival…

Multiple startup CEOs say that the government forcing repayment and subsequent rejected tax credit claims will render them penniless. One company, which won awards for innovation and was clearly eligible for the tax rebate, is now facing the taxman demanding repayment, likely leading to its collapse. While there may be some bad apples in the small business industry, HMRC’s excessive clampdown on tax rebates will stifle startups and innovation. So much for pro-growth Labour…