Encouraging R&D is positive move but there are other levers the Government should pull to reinforce the UK’s position as a leader in innovation.
Commenting on the Chancellor’s Autumn Statement pledge to boost investment in R&D by an additional £2bn per year by the end of this Parliament, David Woodward, tax partner at KPMG in the UK, said:
“The Government has pledged to invest in R&D in order to reinforce the UK’s position as a leader in innovation and to improve the UK’s productivity. The Government is proposing a combination of grant funding, improvements to the R&D Tax and Expenditure Credit regimes as well as support from the British Business Bank to encourage private investment in growing innovative companies to ensure they remain in the UK. This will certainly be extremely welcome as it covers the entire life cycle from germination of new knowledge and ideas, to product/solution development, right through to commercialisation.
“However, in addition to the financial incentives outlined, the Government must ensure that companies can continue to employ the best people in their fields and the UK continues to attract the best scientists, engineers and students to our great universities and colleges. Ignoring any aspect of the innovation ecosystem means we will fail to capture the full benefit of an innovation based economy for the UK society as a whole. ”
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For further information please contact:
Jess Liebmann, KPMG Corporate Communications
T: 0207 311 3245
KPMG Press office
T: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.