As the PM begins to court business again let's hope the government are going to be bold and look to further enhance the successful R&D tax credit regime.
Shackling it now as part of a trade bargaining package could prove to be a huge own goal.
To realise the full economic potential of these new technologies, the Prime Minister will also announce a review of the support for organisations undertaking research through the tax system, looking at the global competitiveness of the UK offer. The government’s business and tax reforms since 2010 have delivered one of the most competitive corporate tax regimes in the world by cutting corporation tax and increasing R&D tax credits – from £1bn to almost £2.5 billion a year. Research shows each £1 spent on R&D tax credits stimulates between £1.53 and £2.35 of additional investment in the UK. The Prime Minister will announce that Her Majesty’s Treasury will look at whether we can make this support even more effective, to ensure the UK continues to actively encourage innovation.