Jumpstart welcomes Autumn Statement’s focus and investment in R&D

Edinburgh-based R&D tax relief specialists Jumpstart has welcomed the significant focus on the UK’s R&D capabilities in the Chancellor’s Autumn Statement.

Announcing multiple initiatives that will have a significant impact on the nation’s R&D spend, the Chancellor, Philip Hammond, declared that he was “investing today for the economy of the future”.

The Statement revealed that four key areas for boosting productivity, one of which is R&D, will be supported through the creation of a new National Productivity Investment Fund (NPIF).

The funding allocation from the NPIF for R&D will be £4.7 billion over four years, starting from 2017.

Mr Hammond said that, through the NPIF, the Government is planning to 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.

Commenting on the Autumn Statement, Brian Williamson, managing director of Jumpstart, said: “Earlier this week, the Prime Minister pledged to boost the Government’s investment in R&D by an extra £2 billion a year as a way to ensure that ‘post-Brexit Britain is at the cutting edge of science and tech’. Jumpstart wholeheartedly supported and welcomed this announcement.”

The CBI’s Director-General, Carolyn Fairbairn, also looked on the Prime Minister’s announcement favourably, stating that investing in innovation generates jobs and economic growth nationwide, “offering solutions to the challenges we face today and in the years ahead.”

As well as the annual £2 billion 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.

Mr Hammond will now look at how this support can be enhanced, helping to ensure continued innovation.

“I believe that the UK’s exit from the EU could bring about a subsequent ‘loosening of the shackles’ which bind us when it comes to R&D tax relief,” Mr Williamson continued.

“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.”