Jess Phillips – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Jess Phillips on 2016-02-19.

To ask the Secretary of State for Business, Innovation and Skills, what grants and schemes his Department offers to small and medium-sized businesses to encourage innovation.

Joseph Johnson

My Department and its partner organisations are working to make the UK the best place in Europe to innovate, patent new ideas, start and grow a business. Innovate UK delivers a range of programmes to support business-led innovation, including tools specifically designed for early-stage small and medium sized businesses.

The Spending Review protects, in cash terms, total spending on innovation through Innovate UK. We are also expanding the network of Catapult Centres, which provide valuable innovation support to businesses, and helps turn their ideas into world-beating commercial applications. There are currently nine Catapults with a further two due to open later this year.

The UK Intellectual Property Office provides a wide range of support to businesses of all sizes through its on-line tools and direct engagement, including an IP audit scheme targeted at high growth SMEs.

Support is also provided by the Government through R&D tax credits, which now support between 70% and 80% of all business investment in R&D. In 2013/14 there were 18,000 companies using the R&D tax credit schemes, claiming a total of £1.75 billion. In addition, in the area of capital allowances, the permanent level of the Annual Investment Allowance has increased from £25,000 to £200,000 for all qualifying investment in plant and machinery made by business on or after 1 January 2016. 100% relief for capital expenditure incurred in the course of R&D activities is available under the Research & Development Allowance.