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The UK Government has long understood the importance of innovation to drive the economic environment of the country, so it comes as no surprise that they have announced an expansive new budget for 2022-2025. The Government hopes that committing £39.8bn to R&D will help cement the UK as a science superpower and as the ‘Innovation Nation’.
The biggest ever R&D budget is a key part of the Innovation Strategy which seeks to increase the total R&D spend to 2.4% of GDP by 2027. The £39.8bn will be split between the Department of Business, Energy, and Industrial Strategy’s partner organisations.
This commitment to R&D is seen in the Spending Review pledging record levels of investment over the next three years, with R&D spend increasing by 33% from £15bn to £20bn.
It is hoped that this high level of investment will encourage a switch to a more environmentally friendly business environment, whilst maintaining technology as a key role within the UK economy. Other key areas of investment include The UK’s Space Agency, and further support for the Levelling Up scheme.
Commenting on the budget, Business Secretary Kwasi Kwarteng stated: “For too long, R&D spending in the UK has trailed behind our neighbours – and in this country, science and business have existed in separate spheres. I am adamant that this must change. Now is the moment to unleash British science, technology, and innovation to rise to the challenges of the 21st century.
“My department’s £39.8 billion R&D budget – the largest ever R&D budget committed so far – will be deployed and specifically targeted to strengthen Britain’s comparative advantages, supporting the best ideas to become the best commercial innovations, and securing the UK’s position as a science superpower.”
randd understands the importance of championing R&D investment, and last year our Finance Director, Matt Timby, and Operations Director, Adam Bointon, met with Business Secretary Kwasi Kwarteng to discuss and promote the benefits of the R&D Tax Credit scheme and how randd’s clients typically reinvest that money into their businesses and further R&D projects, whilst highlighting that for every £1 invested in R&D results in a further £2 of additional private investment.
It is clear that the Government sees the true value and impact that R&D investment has on the economy, and with this new budget now is the best time to see if you are eligible to claim. If you would like to speak to our experts, contact our office today to have a short phone call to discuss your eligibility.
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