Following the launch of the 2012 Budget, which contained some good news for science, Universities and Science Minister David Willetts has said:
“Industry and universities have a vital role to play in collaborating to achieve sustained growth in our economy. We know from experience that targeted funding can be successful in attracting significant business investment to our university research base. As part of our drive in bringing together the business, charity and university sectors, this new £100 million investment could bring in upwards of £200 million additional private funding to help stimulate innovation and secure our high-tech future.”
More detail about this initiative can be found within the Budget.
As part of the Government’s ambition to make the UK the technology hub of Europe (1.224), it will:
- Set up a new £100 million fund to support investment in major new university research facilities, including through additional provisions. The fund will allocate its ﬁrst bids in 2012–13 and will attract additional co-investment from the private sector.
On this £100 million, a statement from BIS offers a little more information. It is hoped the £100 million will ‘increase and bring forward private sector, or charity investment in UK university research infrastructure’ and that ‘the funding would be dedicated to large capital projects which lever in significant private investment, such as joint research facilities’.
Other spending measures include:
- Aerodynamics centre – The Government will invest £60 million to establish a UK centre for aerodynamics to open in 2012–13 to support innovation in aerospace technology, commercialise new ideas and spin-off technologies with wider applications in other sectors. (36)
On Corporate taxes:
- Patent Box – As announced in the Corporate Tax Road Map in November 2010, the Government will introduce a reduced 10 per cent rate of corporation tax for proﬁts attributed to patents and certain other similar types of intellectual property. The regime will be phased in over ﬁve years from 1 April 2013. (2.98) (Finance Bill 2012) (bg)
- Research and Development (R&D) tax credits – As announced in Budget 2011, with effect from 1 April 2012 the rate of R&D tax credits for small and medium enterprises (SMEs) will increase from 200 per cent to 225 per cent; the limit of SME payable credit, based on their PAYE/NICs liability, will be removed; and the £10,000 minimum expenditure requirement for large companies and SMEs will be abolished. The Vaccine Research Relief for SMEs will also be removed. (2.99) (Finance Bill 2012)
- R&D tax credit: ‘Above the Line’ (ATL) – From April 2013, the Government will introduce an ATL credit for R&D, with a minimum rate of 9.1 per cent before tax. Loss-making companies will be able to claim a payable credit. The Government will consult on the detailed design of the credit shortly after Budget. Final rates, including for the payable credit, will be decided following consultation. (2.100) (Finance Bill 2013) (12)
On VAT measures:
- VAT: relief for European Research Infrastructure Consortia – As announced at Budget 2011, the Government will introduce secondary legislation in autumn 2012 to provide VAT relief to European Research Infrastructure Consortia.