Hull & East Yorkshire firms drive innovation as R&D spend hits £50m
What RB's £105m new centre in Hull will look like
By Hull Daily Mail | Posted: 14 May 2019
Hull & East Yorkshire businesses spent more than £50m on research and development in a year.
The region’s firms spent a total of £55m in the 2016/17 financial year, according to new figures released by HMRC.
Figures also showed East Yorkshire companies made a total of 270 claims for R&D tax credits in the period – designed to encourage greater spending on innovation.
Across Yorkshire, business commitment to R&D rose significantly.
Richard Wilson, of tax firm RSM, said: “Compared to the data released this time last year, the latest figures show another healthy rise in the numbers of applications for R&D tax credits.
“It’s pleasing to see that Yorkshire-based businesses have seen a higher overall level of support for their R&D activity.
“While this is very encouraging, there are some sectors – construction in particular – where the numbers of claims are negligible, despite the likelihood that many are involved in R&D activity.
Manufacturing businesses made the most claims for R&D support (PA)
“The fact is there could be many more businesses across the Yorkshire and Humber that are undertaking R&D work but are missing out on the R&D tax credit payments to which they are entitled.”
The East Riding came above Hull in 2016/17 for R&D spending.
A total of £30m was spent by the region’s businesses during that year - £5m than in Hull.
The number of claims made by East Riding firms was also higher than in Hull, at 165 compared to 105.
In total, businesses across Yorkshire submitted 2,625 R&D claims in 2016-17, claiming some £125m in tax relief.
Compared to the data reported for the previous year published in February 2018, it marked a 50 per cent rise in the number of claims and a 25 per cent rise in the amounts claimed in R&D tax credits.
The largest number of claims across the region came from manufacturing companies (925) which collectively claimed £45m, followed by information and communications firms (465) which claimed £25m.
Professional, scientific and technical businesses (400) claimed £25m.
R&D tax credits are a tax relief designed to encourage greater R&D spending, leading in turn to greater investment in innovation.
They work by either reducing a company’s liability to corporation tax or providing a cash injection for companies without a tax liability.
In Hull, health giant RB is set to unveil its new £105m R&D centre in the coming months.
It represents the single biggest investment in the company’s history, and a significant commitment to research.