The largest ever R&D budget (estimated to be worth) £39.8bn has been allocated across the Department for Business, Energy and Industrial strategy’s partner organisations. The spending review promised historic levels of investment in the UK’s world-leading research base over the next three years, with R&D spending scheduled to rise by £5bn to £20bn per year by 2045-2045, a 33% increase over the current parliament. The funds will enable the UK Government to meet the goals set out in the innovation strategy, with these investments supporting our goal of reaching 2.4% of GDP in R&D spending by 2027.
These investments will help to support the new cross-Government approach to Research & Development, enabling the Government to gain a strategic advantage in science & technology, collaborate with industry to leverage private investment and deliver prosperity, security, and resilience in the 21st century. As a result, the investment will support priorities that are critical to the UK’s prosperity, such as combating climate change and equalising opportunities across the country. It will also enable investment in new technologies, such as clean technology and artificial intelligence, where the UK has a strong competitive advantage globally and industrial strength at home.
The UK Research & Innovation (UKRI) will receive over £25bn in R&D Budget over the next 3 years, reaching over £8.8bn in 2024-2025, its highest ever amount and over £1bn higher than in 2021-2022. This includes a 66% increase in funding for core innovate UK programmes to £1.1bn in 2024-2025, assisting businesses in obtaining the cash, skills and connections they require to innovate and flourish.
The budget of the UK Space Agency will also increase to almost £600m by 2024-2025, reflecting the fact that our world-leading space sector contributes nearly £16bn to UK GDP while also supporting complementary sectors such as finance, logistics and agriculture. These allocations mirror the Government’s recent commitments in the “Levelling Up” to boost public investment in R&D outside of the wider South East by at least a third throughout the spending review period.
This boost in R&D investment combined with the R&D Tax Credit scheme will increase business confidence to invest in these industries, in a post-pandemic era.
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To find out more information about the new budget, click here.