Nicole Ballantyne, the company’s Yorkshire client engagement manager, said the announcement by chancellor Philip Hammond of improved government support for R&D was an opportunity for all businesses to check their eligibility.
“The chancellor said that he was: ‘Investing today for the economy of the future’ with the multiple initiatives he announced. Yet many manufacturers, IT and creative businesses ignore their opportunity to reclaim investment,” she said.
“Following the UK’s decision to leave the EU in June industry has never needed investment more and R&D tax credits are an economic, cost effective way to claw back time and money that a company invests in its and the country’s future,” she added.
Announcing the new National Productivity Investment Fund (NPIF) Hammond said that it will allocate £4.7bn over four years starting in 2017 for R&D. This will help fund an Industrial Challenge Strategy Fund, managed by Innovate UK and research councils, which will support collaborations between businesses and the UK’s science base.
Furthermore, UK Research and Innovation will allocate additional funding as a way to increase research capacity and business innovation, further enhancing the UK’s leading research base and knowledge economy with the aim of unlocking the country’s full potential.
Earlier this week, the Prime Minister pledged to boost the government’s investment in R&D by an extra £2bn a year as a way to ensure that ‘post-Brexit Britain is at the cutting edge of science and tech’.
In addition to the annual £2bn investment, the government has also called for a review of current R&D tax incentives. With research showing that for £1 spent on R&D tax relief, an additional £1.53 - £2.35 is stimulated for the economy. Hammond will now look at how this support can be enhanced, helping to ensure continued innovation.
“There has never been a better time to invest in R&D for business in manufacturing, IT, digital or the creative sectors. Many businesses fail to maximise their investment because they don’t know about or fully understand the R&D tax credits system,” explained Nicole.
“The UK’s consequent European departure will mean that we could attain the ability to make our own rules on such matters – which the chancellor’s statement has alluded to.
“The ability to control our own tax relief schemes will help to stimulate increased investment, which will aid us in obtaining a higher GDP. Basically, these R&D schemes are fundamental platforms for business.”