Chancellor announces research and development funding

Osborne said his Budget speech outlined Britain’s industrial ambition, and included reforms to the financial environment in which businesses operate.

These include the implementation of a ‘patent box’ to encourage investment in R&D and related manufacturing in the UK, by introducing a lower rate of corporation tax on profits generated from UK-owned intellectual property.

From April 2013 eligible profits from worldwide sales of products protected by a granted UK or European patent will be taxed at 10 per cent. An ‘above the line’ R&D tax credit will be introduced in 2013 also.

University R&D
UK universities are to receive £100m, alongside the private sector, for investment in major new university research facilities. 

To be administered by Higher Education Funding Council for England, the funding will be dedicated to large capital projects that lever significant private investment, such as joint research facilities.

Commenting on the announcement, Research Councils UK said: ‘This funding is a boost to UK research, which has seen reductions to capital budgets, as it will help accelerate private sector investment in research infrastructure. Investment in the research base is essential to stimulating growth and this new funding acknowledges how vital research is to the economic prosperity and societal wellbeing of the UK.’