With just a week to go until the General Election, the British Security Industry Association (BSIA) has urged politicians to think carefully over the future of R&D tax credits, claiming that they are “essential to economic recovery.”
The tax relief – worth £790m in 2008 – is currently available to businesses of all sizes in exchange for the continued development of new technologies. While both Labour and Conservative parties had previously planned to scrap the tax relief entirely, the Conservatives – under the guidance of technology entrepreneur Sir James Dyson – have now outlined plans to maintain the credits, but for small businesses only.
James Kelly, Chief Executive at the BSIA, comments: “The BSIA has long been campaigning against the abolition of R&D tax credits and welcomes the Conservatives’ reconsideration of their plans to scrap this relief for smaller businesses as a step in the right direction. Indeed, we urge that all political parties do the same. Tax credits are an essential source of financial support to British businesses and have remained so throughout the economic downturn, enabling many to continue their contribution to the UK’s GDP in a period of great economic uncertainty.”
“The BSIA represents businesses of all sizes, many of whom have benefited greatly from R&D tax credits over recent years. It is our view that whichever party comes to power in May, they support the use of R&D Tax credits as an important part of government strategy to drive the UK out of the current economic crisis.”
The BSIA has produced a position paper on R&D tax credit and this can be found on the BSIA’s website.