Brussels, March 2002
The UK will introduce tax credit for large companies in order to increase their level of research and development (R&D), the Treasury has revealed.
The Treasury has, for the first time, revealed details of its 2002 budget, three weeks before budget day on 17 April. The new measures include a tax credit to boost research and development among larger companies, benefiting over 1,500 companies operating in the UK, a new regime for providing relief to companies for the costs of intellectual property. This is aimed at encouraging business to take advantage of new opportunities in the knowledge based economy, and will be worth around £200 million (around 325.5 million euro) to UK businesses, rising to £350 million (around 569.7 million euro) in the longer term.
'As we prepare for the sixth budget we are able to build on this platform of stability and employment creation and our energies must continue to be directed to promoting enterprise and investment and raising our country's productivity,' said Chancellor of the Exchequer, Gordon Brown.
David Lennan, Director General of the British Chamber of commerce has praised the initiative, saying 'the government is right to use tax policy to encourage innovation. It is particularly imperative that our manufacturers innovate and close the investment gap with their rivals overseas.' Mr Lennan added that he'd like to see equally supportive measures for small businesses.
The Save British science society (SBS) has also welcomed the announcement. Director of SBS Peter Cotgreave said 'we are not just calling for this because it's good for science. It's good for Britain and for jobs.
Highlighting the positive impact that R&D investment has on productivity, Dr Cotgreave added 'if you look at which businesses were investing in research 10 years ago, they're the ones that have grown the most and created most jobs. There is no question about it, [...] the nation needs to get smarter, and one way to do that is to do more research and development.'
For further information, please consult the following web address: http://www.savebritishscience.org.uk/te xts/press/pr0208.html