The Chancellor of the Exchequer has delivered his 2022 Spring Statement to Parliament.
In response, Richard Torbett, Chief Executive, the Association of the British Pharmaceutical Industry, said:
"Innovative sectors like the pharmaceutical industry will be central to the Chancellor’s plan to innovate more, lift growth and deliver a faster-growing economy.
“Our industry already invests more in research and development than any other sector. Today’s statement includes important measures to reform R&D incentives in a way that reflects modern medicine discovery, which can support our world-leading sector to grow.
“The Chancellor also sent an important signal that the government will look again at how the apprenticeship levy works. Getting this right can support more people into careers in the life sciences sector. This is something ABPI members have been calling for and we look forward to working with the government to get this right.”
Today’s statement includes important measures to reform R&D incentives in a way that reflects modern medicine discovery, which can support our world-leading sector to grow. Richard Torbett
The Spring Statement included a number of relevant announcements for the pharmaceutical industry:
- Tax plan: The government will develop a Tax Plan with the intention of cutting and reforming business taxes, to create a new culture of enterprise and the conditions for private sector-led growth.
- R&D tax relief reform: Confirmation that from April 2023, all cloud computing costs associated with R&D, including storage, will qualify for relief.
- The government will legislate to ensure that some R&D that is conducted overseas will remain eligible where it is necessary – including where activities must take place outside of the UK, for example, clinical trials.
- RDEC: To ensure the effective targeting of the UK’s R&D relief the government will consider increasing the generosity of RDEC to boost R&D investment in the UK. This would rebalance the schemes and make RDEC more internationally competitive
- Apprenticeship levy: A commitment to examine whether the current tax system – including the operation of the apprenticeship levy – is doing enough to incentivise businesses to invest in the right kinds of training.
Last modified: 20 September 2023
Last reviewed: 20 September 2023