In today’s Autumn Statement, the Chancellor confirmed that the R&D tax credit system would be reviewed, sealing a victory for the automotive and broader manufacturing sector. The announcement comes following a campaign by the Society of Motor Manufacturers and Traders and EEF to have the credit process revised.
The revision will help UK automotive to capitalise on its global significance, generating more investment in UK R&D, safeguarding jobs and affirming the country’s status as a prime location to base high-skill operations.
“Reform of the R&D tax credit system propels the UK into a new league of global competitiveness sending a strong signal to international investors,” said Paul Everitt, SMMT Chief Executive. “The UK is already a centre for innovation with advanced engineering and low carbon expertise attracting major corporations to invest in the UK; this reform will enhance the UK’s investment appeal, create high value jobs and drive economic growth.”
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.
The automotive industry is a vital part of the UK economy accounting for £49 billion turnover and £10 billion value added. With over 700,000 jobs dependent on the industry, it accounts for more than 10% of total UK exports and invests £1.3 billion each year in automotive R&D. In the last 10 years, huge strides have been made to reduce the environmental impact of its products throughout the life cycle. Since 2000, improvements in production processes mean energy used to produce vehicles is down 28%, water use has been cut by 43% and 78% less waste enters landfill sites. Average new car tailpipe CO2 emissions have also been slashed and are down 20% compared to 10 years ago. For more details, see SMMT’s 12th Annual Sustainability Report and Motor Industry Facts at www.smmt.co.uk/publications.