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News Item: Sunak urges businesses to invest in innovation

Yesterday, Wednesday 18 May, Chancellor Rishi Sunak delivered a speech at the CBI annual dinner urging businesses to invest in innovation.

He said:


...if we want to raise productivity in this country we need to do more to support those already in work.

And, since the financial crisis, the rate of increase in innovation has slowed considerably

...So why is this happening? The problem I don’t believe is any longer the government.

Public sector net investment is reaching its highest sustained level since the 1970s.

Yet capital investment by UK businesses, as a % of GDP, is a lot lower than the OECD average.
Government funding for post-16 education is increasing, the Prime Minister has announced a lifelong learning entitlement, alongside a plethora of new skills initiatives like Skills Bootcamps and T levels.

But UK employers spend just half the European average training their employees.

And over this Parliament, we in government are delivering our pledge to increase public investment in research and development by 50% to £22 billion.

But businesses investment in R&D, as a % of GDP, is less than half the OECD average.

In other words, further government action can only take us so far. We need you.

The wealth creators. The entrepreneurs. The leaders.

We need you to invest more, train more, and innovate more.

And as I’ve said previously, our firm plan is to reduce and reform your taxes to encourage you to do all those things.

That is the path to higher productivity, higher living standards, and a more prosperous and secure future.

Against a backdrop of significant global and economic challenges, Sunak was keen to stress the importance of looking forwards.

I believe our most exciting companies are still to be founded.

Our most talented people are still to be taught.

Our best ideas are still to be discovered.

Our best days lie ahead.

Government alone cannot get us there.

It will take all of us, together.

But we can get there. So let’s get to work.

MPA is founded on the same principle of innovation for growth. We’re here to support UK businesses in developing sustainable strategies with research and development at the heart and we’re passionate about British innovators.

If you’re undertaking R&D and need help understanding what incentives and financing options are out there, get in touch and we’ll see what your next steps could be.

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