The UK’s innovative tech sector has received a major boost in the Chancellor’s latest budget, including a commitment to greater funding, new visas to attract overseas talent and a review of R&D tax reliefs.
Despite the difficulties that the UK has faced in the last year and the considerable public spending to help businesses through the pandemic, Rishi Sunak has announced increased investment in the UK’s most innovative industries.
Speaking before Parliament, the Chancellor announced a £375 million UK-wide ‘Future Fund: Breakthrough’, which will invest in highly innovative companies, such as those working in life sciences, quantum computing, or green tech that are aiming to raise at least £20 million of investment.
This scheme will encourage private investors to co-invest with the Government in highly innovative research and development (R&D) companies, spreading the cost to reduce the burden on taxpayers.
Aimed at R&D intensive companies, it is hoped that it will accelerate the deployment of breakthrough technologies, which can transform major industries.
The costs involved in R&D are often high and technology companies typically require more capital than businesses in other sectors, but often deliver a lot back to the economy through the innovations they create.
The Chancellor also announced a new Help to Grow scheme to offer up to 130,000 companies across the UK a digital and management boost, while also committing to reforming the immigration system to help ambitious businesses attract the best international talent and expertise.
Alongside these announcements, the Government has also launched a comprehensive review of Research & Development tax reliefs. This will explore how the existing system can be improved to help businesses access support, including a detailed review of qualifying expenditure and the claims process.
This is exciting news for the UK tech sector and these measures combined should mean the UK remains an attractive place to do business.
If you need help with your R&D funding, why not speak to us today. Our experienced team have helped hundreds of businesses access funding and relief via the UK’s R&D tax credit system.