BIA submission to Spring Budget 2023
BIA has submitted its representation to HM Treasury for the Spring Budget 2023.
In our submission, we say:
- The Prime Minister’s and Chancellor’s pro-innovation growth agenda and ambitions for the UK to be a science superpower are very welcome, but recent announcements and ongoing reviews of R&D tax relief do not match this rhetoric
- Innovative companies are living through half a decade of instability due to successive and ongoing changes to the R&D tax relief at a time when the UK should be doing everything it can to support start-ups and scale-ups
- The halving of the SME R&D tax relief at Autumn Statement has already negatively impacted investment decisions, resulted in cancelled hiring plans and movement of investment from the UK
- We call on the government to delay, for R&D intensive businesses, the SME R&D relief rate cut announced at Autumn Statement 2022 and also delay the refocusing of relief to UK activity announced at Autumn Statement 2021.