Tech start-ups tell No10 they will lose £1b if rebate cuts go ahead
A number of UK based start-ups have written to Prime Minister Rishi Sunak, requesting that he rethink the slashed rebates for small and medium businesses.
The government’s Autumn statement has limited the tax credits available to mid level companies in a bid to increase rebates available to larger businesses. According to tech start-ups this will make innovation and production for them in a time where funds from venture capitalists are on the decline.
According to reports by the Financial Times, the companies behind the letter have estimated that they will lose over £1b in funding if the cuts are implemented. However, the proposed cuts will save the treasury an estimated amount of £1.3 b, with over £200 m to £300 m being saved from a reduction in fraud and erroneous claims.
In a statement, the Treasury said “Our ongoing R&D tax reliefs review is making sure taxpayer’s money is spent as effectively as possible while boosting the UK’s innovation and productivity.”