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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Jess Liebmann, KPMG Corporate Communications
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KPMG Press office
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