Increased Investment in R&D March 2020 Budget
The UK government reward British businesses who invest in R&D.
- The 2020 Budget sets out plans to increase R&D investment to £22 billion per year by 2024-25
- The rate of R&D tax credits to increase
- What is classed as R&D? Good question. The government is currently consulting on this with a view to enable potential widening of the definition. This may mean including additional qualifying expenditure such as data and cloud computing.
This landmark investment is the largest and fastest ever expansion in support of researchers and innovative businesses, taking direct support for R&D to 0.8% of GDP and placing the UK among the top quarter of OECD nations – ahead of the USA, Japan, France and China.
“Efforts to ramp up R&D will be crucial to keep businesses reset for the long-term challenges ahead.”
The Institute of Directors also welcomed the Chancellor’s R&D credit increase. Responding to Sunak’s Budget