Sunday, December 4, 2022

Business spending on high-reward R&D in Yorkshire & Humber falls 11%

Spending on the most valuable forms of innovation by Yorkshire & Humber businesses fell by 10.6% to £1.5bn during the pandemic, according to government statistics published yesterday.

Despite the fall in spending, the number of tax relief claims for high-reward research and development (R&D) projects made by Yorkshire & Humber businesses increased in 2020/21, rising 9.2% from 6,070 claims to 6,630, analysis by innovation funding specialist Catax shows.

The data is captured by HMRC and is based on claims made for R&D tax credits, which reward businesses for qualifying activity. R&D tax relief was introduced in 2000 and results in either a reduction in a limited company’s corporation tax bill or a cash lump sum for businesses seeking to resolve a scientific or technological uncertainty.

R&D projects carried out by UK businesses introduce new products and services to the marketplace which play a critical role in economic growth, as they attract investment, boost exports and lead to the creation of more skilled jobs.

Figures released by HMRC show that in Yorkshire & the Humber, spending on qualifying R&D fell by 10.6% from £1.6bn in 2019/20 to £1.5bn in 2020/21.

UK-wide innovation spending that qualifies for tax relief fell 11% to £38.1bn in 2020/21 — down from £42.8bn in 2019/20.

Mark Tighe, CEO of innovation funding specialist Catax, says: “The pandemic has caused a setback for innovation spending in Yorkshire & the Humber, but it is encouraging to see that more businesses are making claims for this type of high-reward R&D activity.

“This kind of innovation is of vital importance to local economies, as it helps businesses grow and creates even more skilled jobs.

“Businesses are already bouncing back from the pandemic and are innovating in earnest, which will kick-start an acceleration in R&D spend.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemichaving a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close