Small firms plan to cut R&D over tax credit changes, survey finds

UK risks being left in “an innovation wasteland”, says business group

Over half of small businesses that have received R&D tax credits in recent years are planning to scale back investment in research and innovation if the government goes ahead with plans to slash such relief, a survey has found.

Chancellor Jeremy Hunt announced controversial plans to cut the rate at which small and medium-sized enterprises can use spending on R&D to lower their tax bills in his autumn statement in November. Moves to reduce fraud are also in the works.