Analysis

March 14, 2023

UK Budget — Why startups are calling for a reversal of R&D tax cuts

UK founders and investors warn that cutting SME R&D tax credits will cause the UK to fall far behind other countries as a base for research


Amy O'Brien

7 min read

Hunt after giving his autumn Budget. Image: House of Commons

Rishi Sunak's government has received praise from the UK tech community for its fast response to the SVB UK debacle. UK ministers and the Bank of England worked over the weekend to secure a buyer for the UK subsidiary of the US bank, averting a crisis for hundreds of startups. 

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Picture of Rishi Sunak, the former UK chancellor
Prime minister Rishi Sunak
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Ariana Gomes, a scientist behind UK-based biotech startup Baseimmune.
Experts warn that scrapping the tax relief will de-incentivise companies from hiring research talent in the UK
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Amy O'Brien

Amy O'Brien is a freelance reporter covering Italian tech. She was previously Sifted's fintech reporter

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