Autumn Budget 2025
The government continues to focus on driving economic growth though research and development and in supporting companies to access funding to be able to scale and grow, and achieve success in the UK.
Investment in research and development (R&D) is set to accelerate for those prioritised, that is, with a continued focus on the Industrial Strategy eight sectors of: advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services. This will see UK Research and Innovation (UKRI) directing £9 billion over four years, including £4.5 billion for innovative UK companies in those sectors.
We have seen significant changes to the R&D regime in previous Budgets, so no changes were introduced this time to the rates or structure of the regime in this Budget. This was in line with expectation as the new single merged scheme has only recently come into force for accounting periods starting on or after 1 April 2024.
The only change which will take effect from Spring 2026 is a pilot targeted advance assurance service. This is set to provide SMEs with the opportunity for clarity on key aspects of their R&D tax relief claims ahead of submission to HMRC. Further details on how this is to be administered are yet to be released but we hope that responses to the advance clearance consultation from Industry and professional advisers will have been carefully considered in shaping this ‘second generation’ advance assurance service.
