Biotech lobbies for further UK tax breaks
pharmafile | March 17, 2011 | News story | Research and Development | BIA, R&D tax credits, biotech
Biotech companies are calling on Chancellor George Osborne to provide extra incentives for research in his forthcoming Budget.
The budget will be announced by the Chancellor next Wednesday, and is widely expected to include measures to help stimulate growth in the stagnant UK economy.
In its ‘Budget for the Life Sciences’ UK biotech industry association the BIA has called for innovative thinking, and a focus on maintaining and building tax incentives such as R&D credits.
The BIA plan calls for measures to make these existing tax breaks more generous to its members. Its suggestions include ending the current link between R&D spend and PAYE and National Insurance payments made under the current system. The BIA says this results in many SMEs failing to get full value from the regime.
It also urges the government to establish a funding mechanism to transform private sector investment in high growth businesses, and release the potential of Britain’s life sciences industry.
The BIA also proposes measures to extend the benefits of the Enterprise Investment Scheme and those of Venture Capital Trusts, and the changing of existing Consortium Relief rules to encourage pharma to invest in smaller biotech businesses.
Chief executive of the BIA, Nigel Gaymond said: “Last year the government took the decision to protect the science and health research budgets, a move we fully supported. In order to maximise this investment, complementary measures must now be introduced which will help industry to translate this research into new medicines and treatments.”
He added that with the right environment in place, the life sciences sector has the potential to be an increasingly important asset to the UK economy in the coming years.
“The chancellor will be hoping to put Britain on a path to sustainable economic recovery with this Budget. Support for those areas where we can truly lead the world such as the life sciences should be firmly at the centre of his plans.”
Brett Wells
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