Chancellor is hoping that increasing incentives for R&D will unlock the productivity conundrum and help show UK is open for business and innovation.
Extra funds for infrastructure Philip Hammond has spoken about the National Productivity Investment Fund, which provides an additional £23bn billion of investment over five years to upgrade the UK's economic infrastructure for this century. The fund will be extended for another year and expanded to be worth more than £31bn. He adds: "We are allocating a further £2.3 billion for investment in R&D (research and development) and we’ll increase the main R&D tax credit to 12%." This, he says, will take "the first strides towards the ambition of our industrial strategy to drive up R&D investment across the economy to 2.4% of GDP".