In today’s [17 November] autumn statement, UK chancellor Jeremy Hunt set out the government’s planned fiscal policy for the next year, including a focus on increasing funding for R&D.
One part of the statement outlined a change in approach to the handling of investment zones, an idea of former UK prime minister Liz Truss.
Truss’ plan involved an unspecified number of zones across the UK with lucrative tax conditions for businesses, with potential measures including large tax cuts, the abolition of stamp duty, the reduction of employment taxes, easing of planning rules and investment write-offs for plants and machinery.
Hunt’s revision to the scheme means a new focus on “leveraging our research strengths by being centred on universities” rather than developing zones focused on generating growth through low tax incentives.
Guy Warren, CEO of software company ITRS Group, said: “Today’s budget sought to convey a clear message – to show that the Government is taking back control of the current financial situation and that the UK is still a good place to do business.
“Jeremy Hunt outlined that he wants the UK to become the next Silicon Valley, putting the UK’s technology and financial services sectors at the heart of this transformation.
“But as ever, the devil is in the detail, and how exactly he plans to do this, is yet to be seen.
“In the meantime, financial services firms must focus on ensuring they have robust and reliable operations that enhance efficiencies and streamline processes. In doing so, they can strengthen their services and better navigate the recessionary storm.”
In another part of his speech, the chancellor also said that cuts to research budgets would be a mistake, and that he instead aims to increase R&D funding to £20bn by 2024-25.
Other key announcements from today’s statement included the retention of the triple lock on state pensions and a rise of 9.7% in the National Living Wage next year.
