Budget 2020, The R&D Budget
More companies & organisations are now eligible
The Budget 2020 report which was announced on the 11th March by the new Chancellor Rishi Sunak sent ripples of excitement for those looking to support businesses with their R&D claims. It has highlighted an area of opportunity for businesses to invest in research and development (R&D) and cutting-edge technologies. This will ensure that there will be a creation of high quality, highly paid jobs of the future. The Government has ambitious plans to elevate the UK as world leaders in science and technologies ahead of the USA, France, Japan and China. It aims to support companies that wish to develop new ideas and innovative roles within their infrastructure.
£22 billion per year for R&D by 2024-2025
This is a landmark investment. The largest and most sizable and fastest ever expansion of public financial support for R&D ever. This ambitious support being implemented between 2023-2024 aims to increase direct support of R&D to 0.8% of GDP ahead of the OECD nations named above.
The budget 2020 report states that research and innovation lead to better products, services and processes and must drive growth and prosperity across the country. By generating ideas and tools to tackle global challenges such as climate change and an ageing population. The Government plans to increase R&D expenditure from 12%-13% and there will be a focus on expanding the definition of qualifying expenditure to include cloud computing and data.
The inclusion of these industries will recognise the adoption of digital technology by firms to drive productive development and innovation. In recent studies it has been recorded that 70% of UK businesses are now using cloud to develop products, services, or new business models.
The ambitious plans will require private investment in order to meet the Government’s objective of increasing investment in R&D to 2.4% of GDP by 2027.
Breaking down the barriers
It’s easy to get lost in facts and stats and breaking down the Budget 2020 is what is important to us at Blue Garnet. While we are excited by the potential and landmark funding pledge from the Government we understand many companies are often put off claiming because they see the process as being time consuming or simply because they don’t feel that they qualify. However, if your business is undertaking research and development activities to drive innovation, whether that be researching or developing new products, processes, materials, devices or services, or working to improve existing ones, there is a range of R&D funding available.
We will continue to blog on R&D for specific sectors to break down the barriers further and to raise awareness. So please keep a look out for future blogs.
The full Budget 2020 report can be accessed here
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