Hunt asks Vallance to pave way for ‘world’s next Silicon Valley’
SIR PATRICK VALLANCE will lead a review into post-brexit science regulation to slash red tape and turn Britain into “the world’s next Silicon Valley”.
Britain’s chief scientific adviser and national technology adviser will examine how regulation can be changed to “better support safe and fast introduc- tion of new emerging technologies”.
The pledge from Jeremy Hunt came alongside a promise to maintain Britain’s public research and development (R&D) funding budget at £20bn in 2024-25, soothing fears that it could be axed as part of public sector cuts.
The review by Sir Patrick will come alongside consultations into what EU regulations can be scrapped in the fields of digital technology, life sciences, green industries, financial services and advanced manufacturing.
Sir Patrick, a veteran physician and medical researcher, was a key figure in leading the Government’s response to the Covid-19 pandemic.
Mr Hunt said: “I want to combine our technology and science brilliance with our formidable financial services to turn Britain into the world’s next Silicon Valley.” Sir Patrick’s term as chief scientific adviser is due to end in April and a Treasury spokesman said the review would be completed before then.
However, the Government’s commitment
to research and innovation was criticised yesterday after Mr Hunt also revealed changes to tax credits for R&D expenses that experts said will cost companies billions of pounds.
Changes to R&D tax reliefs mean businesses will only be able to reclaim 86pc of their research spending from HMRC, a cut from 130pc previously.
Penny Simmons, a legal director at law firm Pinsent Masons, said the changes will cost small businesses £4.5bn over the next five years.
“Today’s changes to R&D tax credits will punish the UK’S most innovative start-ups,” said Ms Simmons.
While R&D tax credits can help companies pay to boost innovation, the system has been rife with fraud, errors and misuse, worth £469m last year.
Conversely, the Government extended similar tax credits for purchases of cloud computing technology, which will cost the Treasury around £185m over the next five years.
That tax relief will almost certainly benefit companies spending money on technology from tech giants such as Amazon, Google and Microsoft, the leading cloud technology providers.
Steve Hare, chief executive of FTSE 100 software company Sage, said: “There is some welcome relief for small and medium-sized businesses in the Autumn Statement, but if the Government really wants a UK Silicon Valley, then tech needs to be a serious priority.”