Yorkshire R&D spend is UK’s fastest growing
Businesses in Yorkshire and the Humber are leading the charge on spending on the most valuable forms of innovation, with expenditure growing by a quarter, according to analysis of new Government statistics by global tax services and software provider Ryan,.
Expenditure on high-reward research and development (R&D) grew in the region by 23.7% rising from £1.56 billion in 2020/21 to £1.93 billion in 2021/22.
The data, released on Thursday, is captured by HMRC and is based on claims made for R&D tax relief, which reward businesses for qualifying innovation.
Alongside the increase in spending, the number of tax relief claims for R&D projects made by Yorkshire businesses rose by 6% to 6,805 claims. In total, Yorkshire and the Humber businesses claimed £370 million in R&D tax relief, with an average claim value of £54,371.
Overall, UK-wide innovation spending that qualifies for tax relief rose 8% to £44.1bn in 2021/22. However, the number of first-time claimants has fallen for the second year running.
R&D projects carried out by UK companies introduce new products and services to the marketplace, which play a critical role in economic growth as they attract investment, boost exports and lead to the creation of more skilled jobs.
R&D tax relief was introduced in 2000 to encourage and reward innovation, and results in either a reduction in a limited company’s corporation tax bill or a cash lump sum for companies seeking to resolve a scientific or technological uncertainty.
Nigel Holmes, Director, Research and Development at Ryan, said, “Yorkshire and the Humber’s R&D spend is a huge success story, growing faster than any other region. Equally promising is the surge in businesses making claims for R&D tax relief, increasing at a faster rate than nearly all other parts of the country.
“This innovation spending should be a huge boon to the region, as it helps to drive economic growth and job creation and attract more inward investment.”