Budget announcement short on big plans for UK science and technology

The goal of making the UK a science superpower has now become a regular government refrain. Jeremy Hunt, the chancellor, hoped to further this ambition with several pledges in his budget including R&D tax credits for cutting-edge small- or medium-sized enterprises (SMEs), investment in new tech hubs around universities and a more agile drugs and devices regulator. He also pledged investment in carbon capture usage and storage (CCUS), artificial intelligence (AI) and quantum computing, and backed nuclear energy.

The package of R&D tax credits will be worth £1.8 billion for qualifying companies working in areas such as life sciences or AI. SMEs will only be eligible if they spend 40% or more of their total expenditure on R&D, worth £27 for every £100 spent. However, those companies spending less than 40% will receive £18.60 for every £100 spent; the current tax relief is around 33% at present for SMEs.