The theme of today’s Autumn Statement was aspiration, and the Chancellor has certainly delivered a boost to those SMEs with ambitions to grow, with a number of initiatives designed to boost innovation.
“The theme of today’s Autumn Statement was aspiration, and the Chancellor has certainly delivered a boost to those SMEs with ambitions to grow, with a number of initiatives designed to boost innovation.
“To date, the proof has certainly been in the pudding, as existing initiatives around R&D and other tax reliefs for innovators have seen the UK move from 14th to 2nd in the Global Innovation league. It is obvious, therefore, that the call to get Britain innovating has been working.
“So if the UK is to grab the top spot in Global Innovation, then supporting SMEs, science graduates, new technology hubs and parks, and breaking into overseas markets are fundamental.
“However, there’s a need to make sure that once we have innovated, we fully anchor that IP in the UK. For instance, there’s a bit of a myth that it is incredibly difficult to patent anything ‘digital’ which means an enormous amount of our most cutting edge products and services are not being considered for the current patent box regime.
“Furthermore, our recent YouGov poll of 1,400 SMES found that whilst the R&D credit regime is now 14 years old, less than a quarter of businesses (23%) had even heard of it, with only 5% actually using it.
“Today’s 5% increase in the relief available won’t shift the dial financially, but at the very least, might raise the profile."
Katy Broomhead, KPMG Corporate Communications
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.