Brexit-proofing the Economy ...
Brexit-proofing the Economy by Investing in R&D and Supporting Innovation
Adopting a target for national R&D spending will help Brexit-proof the economy and show the world we mean business, employers that are part of the CBI lobby group claim. Backed by employers and businesses across the UK, the CBI want to see R&D spending raised to 3% of the GDP by 2025.
In their new campaign launched on Monday, the CBI said that adopting such a target would send an important message to investors and academics that the UK is still a global player when it comes to technological and scientific innovation.
“Much of what we need to deliver a world-class innovation ecosystem is already in place. The UK has first-rate universities, cutting-edge businesses and attracts talent from across the globe. But our spending on R&D has stagnated at just 1.7% of GDP, with both public and private sectors under-investing,” the lobby group write in a report.
The idea is that the Government set up this measurable target and accompany it with an industrial strategy to encourage companies to invest in R&D. The proposed R&D spending target of 3% GDP would lead to an increase in jobs and economic growth.
Felicity Burch, the CBI’s head of digital and innovation, reflected on Brexit and the pending Article 50: “Now is the moment for the UK to up its game and try and move the needle in terms of where we are on innovation.”
The good news is that in Prime Minister Theresa May’s speech mid-November she expressed aspirations “not simply for the UK to have the lowest corporate tax rate in the G20, but also one that is profoundly pro-innovation.”
The Government already seeks to reward innovation, for the sake of a more globally competitive country, through its generous R&D tax relief initiative. However, businesses and employers, including those represented by the CBI, would like to see further commitment to the R&D tax relief scheme.
A key difficulty faced by the Government, as expressed in the Chancellor Philip Hammond’s budget speech last week, is informing the many companies about the initiative and helping them engage with what is often considered a specialist area of tax.
Leading R&D specialists, such as the Momentum Group, work to help eligible firms secure successful claims, delivering tangible results for many companies who before partnering with Momentum had not heard of R&D tax relief or were not claiming what there were entitled to.
Momentum is Northern Ireland’s leading R&D specialists, focusing exclusively on R&D tax relief claims, with an expert team who apply extensive knowledge of R&D legislation and the ability to identify R&D activities on behalf of client firms.
To date, Momentum has identified tens of millions in qualifying costs for businesses throughout Northern Ireland and the UK – work that the company will continue post-Brexit.
To find out if your business qualifies call Momentum for a free confidential assessment on 028 9140 4030 or email email@example.com
Photo via DFID (CC BY 2.0 Licence)