Theresa May gives Research and Development boost with 2 billion pound investment
by Heather Dandridge yesterday at 12:17
Theresa May gives R&D boost with £2b investment by Linda Eziquiel
On Monday (21st Nov) the Prime Minister announced that she wants to make Britain the 'go-to place for innovators and investors'. This is good news, particularly in light of the uncertainty following Brexit, which has raised concerns over loss of European innovation funding for UK companies.
Plans Theresa May set out included a new Industrial Strategy Challenge Fund and additional government investment worth £2 billion per year by 2020 for research and development. Both are welcome developments which could help allay some of the fears over loss of EU innovation finding.
The UK Government's existing R&D tax credit schemes provide fairly generous support for innovation - in 2014-15 the value to UK Small and Medium Enterprises was in excess of £1bn, reflected in reduced corporation tax bills and tax credit cash payments. However the benefit levels have been constrained by needing EU approval. The Prime Minister announced that she has asked HM Treasury to look at whether they can make this support even more effective, this could indicate that higher levels of benefit will be approved post Brexit.
It will be interesting to see whether any more details are announced by the Chancellor today in his Autumn statement.
Find out more on R&D Tax Credits and how to claim with Linda's CPD course.