Coordinated global R&D may prevent the next pandemic – Is the UK ready to play its part?

It may now feel like a lifetime since the COVID-19 pandemic, but one thing that the ordeal revealed was that the world was less prepared for a pandemic than would have been hoped.

Health organisations around the world united to combat the disease and deliver safe vaccines in record time.

The UK played a vital role in that process, with much of the groundbreaking R&D being done here.

Now the World Health Organisation (WHO) is seeking to prepare for the next pandemic in the hopes of preventing a repeat of 2020.

The time has come for the UK to rise to the occasion once more and utilising R&D tax reliefs will be vital for this process.

What is the WHO hoping to achieve in preventing pandemics?

In order to be ready for the next pandemic, the WHO have developed roadmaps for dealing with ten viral families and a group of bacteria.

These were launched at an event that was designed to highlight the importance of tackling priority viral families and core bacterial threats through a global approach.

Rather than siloing important R&D work to specific countries, the approach should see researchers from around the world pool their talents and resources to ensure that the world is safe from key threats.

Inspired by the rapid turnaround of the COVID-19 vaccine, the goal is to have safe and effective vaccines developed within 100 days of an outbreak.

This should save countless lives and potentially limit the spread of infection between countries.

There is also the chance that such swift vaccine deployments could preserve the economies of affected countries, as ongoing lockdowns can be minimised or avoided with the correct deployment of vaccines.

Given that the economies of many countries are quite frail at the moment, the idea that a pandemic will not cause an economic downturn may be a reassurance to many.

How will R&D tax reliefs help with the WHO’s goals?

Despite the success of UK pharmaceuticals in combatting COVID-19, there has been a distinct exodus in the industry in recent times.

This has resulted in the UK’s ability to develop new medicines and vaccines taking a hit as major players relocate to other countries.

If the Government commit to supporting the WHO in its goals to be pandemic ready, this may spark a renewed investment in the UK pharmaceutical sector.

Even without the larger companies, UK businesses looking to play their part in pandemic prevention should know that R&D tax relief claims can encompass many of the costs involved with this work.

Payments to clinical trial volunteers can be incorporated into an R&D tax relief claim, meaning that UK businesses could stand a better chance of testing out vaccines and cures, as they may be able to attract a wider range of people.

Alongside this, the cost of consumables that were destroyed or irreparably damaged during R&D can be included as well.

This would mean that failed iterations of vaccines or medications could be included, allowing businesses to be more ambitious when seeking an advance.

As R&D tax consultants, we are excited about the prospect of new innovation in the UK and this is an excellent opportunity for businesses to get involved.

For accountants looking to help their clients, it may be worth considering the role that global incentives like these play in guiding R&D.

We can help unlock the full power of R&D tax relief claims and ensure that the UK continues to play a key role in global R&D.

If you want to know more about how R&D tax relief claims could stop the next pandemic, speak to our team today.

Adam Bointon