Spending on research and development (R&D) by UK businesses has stagnated since the EU referendum, a report warns today
A major boost is needed to hit the Government’s target of 2.4 per cent of GDP by 2027, according to R&D tax relief specialists Catax.
R&D spending in UK businesses has hovered at just 1.1 per cent of GDP for more than 10 years despite the introduction of R&D tax credits designed to reward and encourage innovation in 2000. Earlier this year it emerged the UK ranked 11th in the EU for R&D spend as a share of GDP.
But the growth of R&D spending has slowed dramatically in real terms since the Brexit vote two years ago, down to just 3.3 per cent in 2016 then 2.9 per cent in 2017, compared to healthier annual growth of between five and six per cent in the preceding five years.
Read more here.