R&D tax credits could net economy £30bn, say businesses

MORE THAN £30BN and half a million jobs could be created through the use of R&D tax credits in revitalising the UK’s supply chain, the CBI claimed in a report released today.

The business lobby group suggested raising the amount spent on R&D tax credits to 3% of GDP and doubling investment into UK agency Innovate UK would create 500,000 more jobs.

The group recommended widening the R&D tax credit to support the later stages of the commercialisation and manufacture of innovative British products, along with financially incentivising science, technology, engineering and mathematics degrees, and ensuring more graduates take up jobs in these sectors.

CBI deputy director-general Katja Hall (pictured) said the UK has falled behind its competitors, and a shot in the arm would be required in order to regain its position at the top.

“France outstripping our R&D investment by 40%. At the same time, only 3% of our graduates end up in engineering or technology jobs,” she said.

“We need policies which focus on creating long-term value – from increasing R&D spending to establishing a UK-wide materials strategy – to enable industry to play to its strengths and compete effectively on the world stage.

“This renaissance in British manufacturing will make it a byword for innovation and quality.”