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Alongside R&D tax reliefs, the UK Research and Innovation (UKRI) provides vital funding for innovative businesses.
For accountants looking to support clients with R&D, knowing how to utilise the available funding is important.
The UKRI has announced a new strategy for 2026 to 2031, revealing how the funds may be managed in the coming years.
What is changing with UKRI funding?
It was recently discussed that the level of funding offered by UKRI was likely to change in order to adjust to rising costs and ensure that investment was better targeted.
In order to achieve this goal, UKRI’s strategy redefines the kind of research that will be given priority when funding is being awarded.
The goal is to ensure that R&D is funded throughout the country and that the UK can be empowered as a global innovator.
If managed well, this should encourage innovation to stay within the UK and provide additional opportunities for accountants to support R&D with the other existing systems, like R&D tax relief claims.
The focus for the next few years from the UKRI will be on discovery and curiosity-driven research.
In particular, work done to address Government and societal priorities is likely to be favoured ahead of work that would only benefit sectors of business.
While this might seem as though UKRI will be less commercially focused, the reality is that one of the main priorities is facilitating scalable innovative businesses.
The current concern is that businesses start in the UK but get lured overseas once innovation brings growth and the UKRI want to challenge this trend by making the UK more economically viable for R&D.
How will the UKRI strategy impact R&D tax relief claims?
While there is not a direct connection between the change in approach from UKRI and R&D tax relief claims, any shift in the UK’s approach to R&D funding has a ripple effect.
Knowing what the priorities of the UKRI are will help accountants to understand which businesses are likely to benefit from funding and are more likely to engage in higher-value R&D work.
In turn, this can pave the way for a more targeted approach to R&D tax reliefs, as work that aligns with the UKRI values may be easier to present to HMRC as an example of genuine innovation.
Where once grant funding made projects ineligible for R&D tax relief claims, it is now possible to combine the two to allow for more investment in research.
Having an expert R&D tax consultant on hand to support this process can be instrumental in assisting clients with making the most of the funds available.
Our team are fully equipped to support accountants and their clients with R&D by assisting with R&D tax relief claims and connecting innovation with essential grant funding.
Where work has qualified for UKRI funding, we can represent this in the technical narrative and ensure that all costs are calculated accurately.
The change in UKRI funding demonstrates a commitment to the future of innovation in the UK and we want to support accountants and innovative businesses in making the most of it.
Speak to our team today for expert support in understanding the full financial support for innovation in the UK.
Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.
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