R&D in the Autumn Statement
As widely reported beforehand, the Chancellor announced an additional £2bn p.a funding for R&D. The two key areas are:
- Industrial Strategy Challenge Fund. This is designed to support collaborations between business and academia. It will cover a range of technologies however the interesting aspect of this is that the fund itself will set the challenges.
- Additional funding for innovation, applied science and research. This will incorporate a substantial increase in grants from Innovate UK as well as funding areas of ‘national excellence’.
There is also set to be a review into R&D tax reliefs. These have been in existence since 2000 with the benefits being steadily increased since that time and with the aim of making the UK a more competitive place to do R&D these could well be even more attractive in the future.
There is a distinct lack of details on any of the above however a lot of the R&D benefits are capped by EU state aid rules, which may well become less relevant. This would give the UK much more leeway to increase benefits, although until Brexit negotiations are concluded there will be ongoing uncertainty around this.
If you would like further information on the topics discussed in the article please contact Tom Byng, speak to your local MHA MacIntyre Hudson advisor or send an enquiry.