CBI calls for R&D tax credit in the Budget

Designers could benefit if the Government heeds Confederation of British Industry calls to further extend the tax credit for research and development in the next Budget, to be announced on 17 March.

The organisation is asking the Chancellor to give an extra boost to innovation by extending the R&D tax credit to cover 10 per cent of R&D expenditure.

The CBI is optimistic about the economic outlook, but says competitive pressures remain intense.

It also calls on the Government to reduce business taxes by ‘simple, across the board cuts’ in either national insurance, the CBI’s preferred option, or corporation tax.

CBI director general Digby Jones says the Government’s increases in company tax bills have contributed to ‘a decline in the UK as a place to do business’. He says the decision to outsource overseas ‘has many factors behind it and the level of business taxation is one of them’.