What does the Spring Statement mean for the tech community?

The Chancellor took to our television screens once again yesterday to share what’s to come for the budget in the Spring Statement. Here’s a breakdown of the announcements that affect the tech and digital startup community. 

You may remember from the Autumn 2021 budget, there were plans to expand R&D tax credits, along with £39.8 bn confirmed as part of the Government’s Innovation Strategy. 

This extension means covering data science, cloud computing and pure mathematics – which means our deep tech sector is set to benefit. Specialisms such as quantum, AI & robotics should feel positive effects. There was also a mention that a decision will be made in Autumn 2022 on whether this can be more generous. 

Always a pertinent topic within the tech and digital sector nationally, the Chancellor also put an emphasis on investment into much needed skills. A key feature of this means incentivising businesses to invest in their staff in a pledge to continue narrowing the gap in digital skills. 

There was discussion on improvements to the ways in which the Apprenticeship Levy funds can be spent, as well as looking at how flexible training can be supported.

Regarding business investment incentives, there were a few changes hinted at, albeit no clear promises. The Chancellor alluded to increasing Annual Investment Allowance, increasing Writing Down Allowances, or potentially introducing full expensing. 

There was also a big win for self-employed talent and for super early-stage startups. Employment Allowance will rise from £1,000 to £5,000, meaning businesses with National Insurance liabilities less than £100,000 to claim back. The Government predicts this will benefit around 500,000 businesses – you can check whether you’re eligible here.

Fuel duty is set to be cut by 5% until March 2023. This policy should positively impact supply chains across the country, facilitating trade and relieving some issues CFOs face.