The key elements in the UK Spring Budget 2023 announced 15 March impacting photonics include:-
- Inflation forecast to drop to 2.9% by end of 2023
- MOD spending to rise to 2.25% of GDP with additional £11bn over next 5 years, on top of £5bn for next two years already announced.
- New 100% capital expenditure allowance, enabling the full cost of investment to be offset against profits, replacing the previous super deduction.
- New 27% R&D tax credit for SME’s spending >40% of expenses on R&D
- UK quantum strategy launched
- £2.5bn for quantum over 10 years, + £900k for Exascale compute capability
- Abolition of the lifetime pension contribution allowance. Doubling of the annual pension allowance to £60k from £40k
- New ‘returnships’ – apprenticeships for the overs 50’s
- Free childcare for children over 9 months where parents in work – phased in over next 2 years
- Further consultation on ‘New vehicles for investment into science and tech companies, tailored to the needs of UK DC pension scheme’
The PLG welcomes the launch of the UK’s Quantum strategy and long term investment for this emerging technology area, so much of which is enabled through photonics.