These included:
- Launching a review of R&D tax reliefs to ensure the UK remains a competitive location for cutting-edge research – including bringing data and cloud computing costs into the scope of the relief;
- Announcing “Future Fund: Breakthrough”, a new £375m UK-wide scheme which will encourage private investors to co-invest with government in high-growth, innovative firms;
- Announcing that the Government will consult on whether certain costs within the defined contributions pensions charge cap has disincentivised institutional investment in startups and scale-ups;
- Introducing a fast track immigration visa scheme – the ‘scale-up’ visa will enable people offered a job with a recognised UK scale-up to qualify for a fasttrack visa. The Innovator visa will also be reviewed to make it easier for entrepreneurs and foreign-born founders to obtain a UK work visa.
- As promised in last year’s Budget, the Government has now published a Call for Evidence on extending enterprise management incentive plans (EMI) to more companies to meet its policy objectives of helping SMEs recruit and retain employees
These are certainly promising steps in the right direction, and it is to be hoped that they signal the beginning of a radical policy agenda to boost innovation.
However, another flagship budget announcement missed the mark when it comes to boosting research and innovation. The “super” 130% tax deduction for business investments only includes capital expenditure (plant and machinery), not broader investment in innovation.