The commitment to Help to Grow: Management
As part of the Government’s commitment to tackle longstanding growth and productivity issues, the Chancellor announced that “the government will commit to future delivery of the Help to Grow: Management programme beyond 2024-25, providing training to SME leaders.”
This is a fantastic acknowledgement that shows the government not only recognises the value of business schools and the impact they are having on SMEs, but that Help to Grow: Management will continue to be seen a key driver of future growth by HM Treasury and the Department for Business & Trade. The latest data shows participation on the course in all areas of the UK, helping to boost economic growth in regions outside of London and the South East.
Currently, no further details have been announced, which is to be expected given there’s a general election and another Autumn Budget before the current programme funding is due to end in March 2025.
Yesterday’s announcement was an excellent step towards establishing the programme as a long-term policy and we thank our members, stakeholders and course alumni for all your support and engagement.
Full expensing
With this announcement widely anticipated, full-expensing of capital expenditure is now a permanent feature of the UK tax framework. Heralded by Jeremy Hunt as the “biggest tax-cutting measure in modern history”, full expensing was introduced in April and enables companies to obtain 100% tax relief on qualifying main rate plant and machinery expenditure.
This announcement shows the government’s clear intention to drive business investment against an enduring issue of sluggish growth and low productivity in the UK economy. While many businesses will welcome the move, many SMEs across the UK rarely incur more than £1m of qualifying capital expenditure in an accounting period, which may somewhat dampen the overall effect of this announcement.
Research & development reliefs
The Chancellor also confirmed that the simplification of research and development (R&D) reliefs would go ahead, with SME and large company research and development expenditure credit schemes being combined into a single regime.
The merged scheme will provide a taxable credit of 20% of qualifying R&D expenditure, although R&D intensive companies will continue to be able to claim a payable credit at the rate of 14.5%. The concept of an 'R&D intensive' company was introduced from April 2023, and applies when at least 40% of the company’s total expenditure relates to R&D.
The continued commitment to R&D reliefs will be welcomed by some businesses, highlighting the enduring value and key role research, development and knowledge plays in the success of UK enterprise.
Get in touch
If you have any input, feedback or questions regarding this announcement, please don’t hesitate to contact our new Public Affairs & PR Manager Jake McKey: [email protected]