UK firms expect new R&D help after controversial cut to tax relief

Chancellor has committed to working with industry to develop support SMEs need, trade body says

Chancellor Jeremy Hunt is considering “further support” for innovative small businesses after a backlash over his plans to cut R&D tax relief, according to a major industry group.

Hunt announced the controversial plans to cut the deduction rate for small and medium-sized enterprises using the scheme in his autumn statement last November. The scheme works by reducing innovative businesses’ liability to corporation tax, or through making a direct payment to a company.