The chancellor wants to leave future generations an economy fit for purpose. This will be driven by technological innovation and his plans aim to see the UK becoming a world leader in new and emerging technologies. Some of the key actions to achieve this are supporting connectivity between city regions, a further £2.3 billion support in R&D and unlocking £20 billion of patient capital so innovative high-growth firms can achieve their full potential. Interestingly this is being combined with ambitions to lead the world in developing standards and ethics for data and AI whilst creating the most advanced framework for driverless cars in the world. There are also plans to ensure the work force is fit for purpose to achieve these aims so that young people and people who want to retrain can learn the skills it takes to be innovators of the future.
The government is increasing the R&D Expenditure Credit to 12% with effect on or after 1 January 2018 in line with the governments ambition to raise the level of investment in R&D to 2.4% of GDP. This will not only affect large corporates, but our smaller clients who undertake subcontracted R&D or have received state aid towards their R&D projects.