Figures pointing to an encouraging rise in research and development in the region have emerged in statistics showing a 22 per cent rise in claims for R&D tax credits in the East of England over 2017/18. HMRC statistics show firms in the region submitted 4,710 claims for tax credits, up from 3,870 previously.

Meanwhile, the level of support rose by 41 per cent. The improvement was in line the national trend; across the UK, the amount of R&D support claimed rose to £4.3bn, a rise of £1bn from the previous year. First introduced in 2000, R&D tax credits act to encourage greater R&D spending and innovation and cut a company’s tax bill by an additional amount. Over time, the rate of relief has become more generous and is now worth up to 230 per cent for SMEs.

Today, just over 40 per cent of claims are made by companies less than 10 years old. Sheetal Sanghvi, RSM's regional head of R&D tax, said: “It's very encouraging to see R&D claims from East of England companies rising so significantly. While much is uncertain as we move towards the next deadline in the Brexit saga, enhancing the R&D scheme would be an obvious lever available to the government to try and boost the UK economy post Brexit, particularly if state aid constraints no longer applied.”