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09/04/03
Intellect scores direct hit for members from today's budget announcement
Intellect today welcomed the announcements made by the Chancellor, Gordon Brown in the Budget and claimed a victory for its members. In particular the proposals concerning the R&D tax credit represent a victory for Intellect and its member companies who have campaigned vigorously and tirelessly over the last year for the measures, which have been announced today.
Intellect has campaigned since the last budget to ensure that the definition of R&D for tax purposes covered the Intellect industries, so that its members can benefit fully from the tax credit. We have made no secret of our concerns that the definition was confusing and difficult for industry to understand. The work we have done so far has made qualification for the tax credit for R&D undertaken by the Intellect industries more certain. Tom Wills-Sandford Campaigns Director at Intellect commented, " We are delighted that the government has listened to our views and we look forward to working with The Treasury, DTI and Revenue so that the R&D definition is both comprehensive for the R&D undertaken by our members and clear. Our goal is certainty for R&D decision makers. This will encourage more R&D from UK based members and attract and retain UK based R&D undertaken by multi-nationals." Intellect has also campaigned to extend the credit to cover the use of cutting edge software in R&D. Tom Wills-Sandford continued, "Today's measures represent the culmination of a long standing campaign run by Intellect in conjunction with member companies. We are delighted with the government announcement. If today's reforms on software are implemented following consultation, the benefit to one of our member companies alone is as much as £150,000 per annum."
The decision to extend the 100 per cent first-year capital allowance for companies investing in ICT by another year, is also welcomed by our members. The scheme will support and encourage Small Medium Enterprises to enhance their infrastructure capabilities by increased investment in hardware and technology such as broadband.
The promotion of electronic tax payments represents an encouraging step forward in the implementation of the wide-ranging eGovernment programme. It is important that such measures are delivered in conjunction with a positive campaign highlighting the importance of electronic public services in the UK. A recognition that eGovernment provides the citizen with greater choice must be the primary concern for all involved in the promotion of this agenda.
John Higgins, Director General of Intellect commented, "The measures relating to the improvement of skills in the UK including proposals to strengthen the role of Regional Development Agencies, Regional Science and Industry Councils and allowing highly-skilled foreign national to remain in the UK for longer periods of time are encouraging for the Intellect industries. This latter proposal however, will need to be closely regulated to ensure that the system is not abused." On a final note initiatives to encourage investment in energy saving technologies will also be advantageous to our industry.
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