Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Budget 2017: Infrastructure investment to rise to £31 billion

Budget 2017: Infrastructure investment to rise to £31 billion

Chancellor Philip Hammond reaffirmed the government’s commitment to innovation and improving efficiency with a raft of new measures.

The £23 billion infrastructure investment fund announced last autumn will be extended for another year and raised to £31 billion.

On top of this a further £2.3 billion is to be invested in research & development (R&D) and the R&D tax credit for companies will be raised by 12%.

‘A new tech business is founded in Britain every hour,’ Hammond said.

‘Those who underestimate Britain do so at their peril.’

Although welcoming the increased tax break, Kingston Smith tax partner Graham Morgan described the move as 'modest'.

'The announced increase in the R&D Expenditure Credit from 11% to 12% will mean that companies claiming under this scheme will get back £9.72 for every £100 spent on R&D instead of the existing £8.91, a 9% increase,' he said.

'This is a welcome, if modest, increase but the SME businesses are left out of the chancellor’s generosity as the SME rates are unchanged.

Hammond also said that the government will also invest over £500 million for a range of initiatives from AI, 5G and full fibre broadband. 

The chancellor also said it will back the growth in usage of electric cars with a new £400 million charging infrastructure fund, along with a £100 extension of the Plug-In-Car Grant and £40 million in charging R&D.

 

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter