The CBI’s Budget submission letter* to the Chancellor, Philip Hammond, calls on Government to back businesses’ growth ambitions in order to build greater prosperity across the UK. The letter also calls on the Government to make sure it doesn’t add to the mounting burden of costs facing firms for just doing business.
The three key action areas cited in the letter include:
Supporting firms in a more challenging and uncertain economic environment
Improving the attractiveness of the UK as a place to do business, and
Focusing on education and skills to boost regional growth and productivity.
Rain Newton-Smith, CBI Chief Economist, says: “Prioritising stability will inject further confidence in the economy now, and help boost the country’s productivity and prosperity for the future.
“While the economy has proved resilient, inflation is rising and growth is set to slow. As uncertainty around the manner of our EU exit dampens investment and higher inflation erodes consumer spending growth, the Government must show that it is serious about supporting companies to invest, to help our regions and nations prosper."
In the letter the CBI also calls on Government to provide greater detail on how the National Productivity Investment Fund will be spent, including the £2 billion on Research & Development (R&D), and make the best use of existing facilities like Innovate UK.
Mr Newton-Smith, adds: “Our inventors, makers and designers are concerned that the UK is currently too much of an innovation follower rather than a leader in the global economy.
“The R&D tax credit system already has strong support and forms an essential part of the UK’s innovation ecosystem.
“The Government should use their current review into the tax environment for innovation to help smaller firms make the most of the system more easily.”
Whilst the future remains largely uncertain for UK SMEs, businesses must ensure they have the right structures in place to respond quickly to the changing market conditions.
Our SME business experts at Beavis Morgan are able to guide you on your strategy, help you navigate the challenges that lie ahead, and assist in making those all-important business decisions that will have the greatest impact on future success.
What's more, R&D tax credits have proved to be a major boost to British business. The problem remains, however, that many businesses are still unaware that they can claim the credits to help fund R&D, often incorrectly thinking that their on-going enhancement of existing products and services does not quality, because “it is just what we do”.
Having helped many businesses across a variety of sectors make significant claims when some were previously unaware they could, we know first hand how important the R&D tax credit scheme is in encouraging innovation and increased spending on research and development activities by companies operating in the UK.
Whilst the rules can be complex, our team of R&D experts can maximise the value of any potential claim. But don’t delay; with a two-year window to take advantage of these valuable tax relief opportunities, time may be running out for some!
Speak to us today to set the benefits in motion. Our proven methodology offers a painless approach towards obtaining R&D tax credits.