16 March 2011 -- The BioIndustry Association (BIA) has today unveiled proposals designed to release the potential of Britain’s life sciences sector, focussing on incentivising research and development into new drugs and treatments and finding new ways for innovative businesses to access vital funding.
The BIA has submitted plans for a ‘Budget for the Life Sciences’ to the Chancellor of the Exchequer, George Osborne, outlining a clear strategy for unlocking growth in the life sciences industry, a sector in which Britain already has a clear competitive advantage and a record for world-class innovation.
The BIA has called on the Chancellor to prioritise maintaining and building on highly successful tax incentives such as R&D Tax Credits. The Association has set out proposals to enhance the impact of R&D Tax Credits, such as by decoupling the link between R&D spend and PAYE and National Insurance Payments made under the current system, which currently results in many SMEs failing to get full value from the regime. The BIA has also made further recommendations to simplify the administration of the scheme, such as introducing a pre-approval process, and improving training for HMRC inspectors to speed approvals.
At the same time, the BIA has called for innovative thinking on funding for start-up and early stage life sciences enterprises, urging the Government to establish a new funding mechanism based around the successful French Fonds Commun de Placements dans L’Innovation (FCPI). Such a scheme would transform private sector investment in high-growth businesses, and in France has helped to raise over €5.5 billion of investment, leading to direct benefits for 916 companies employing over 54,000 people.
The BIA has also proposed a raft of measures to further encourage growth in the sector such as extending the benefits of the Enterprise Investment Scheme (EIS) and those of Venture Capital Trusts (VCTs), changing existing Consortium Relief rules to encourage large pharmaceutical companies to invest in smaller biotech businesses, and ensuring that the patent box tax relief on intellectual property is successfully implemented in 2013.
Nigel Gaymond, Chief Executive of the BIA, said:
“Last year the Government took the decision to protect the science and health research budgets, a move we fully supported. In order to maximise this investment, complementary measures must now be introduced which will help industry to translate this research into new medicines and treatments.
“With the right environment in place, the life sciences sector has the potential to be an increasingly important asset to the UK economy in the coming years. Measures such as extending R&D Tax Credits and establishing a new funding scheme along the lines of the FCPI will provide a boost both to the life sciences and the wider UK economy.
“The Chancellor will be hoping to put Britain on a path to sustainable economic recovery with this Budget. Support for those areas where we can truly lead the world such as the life sciences should be firmly at the centre of his plans.”
For further information, please contact Robert Winder, Communications Manager, 020 7565 7193; mobile 07825 942 934.
A copy of the BIA Budget representations is available on request.
BioIndustry Association
Established in 1989, the BioIndustry Association (BIA) exists to encourage and promote a financially sound and thriving bioscience sector within the UK economy and concentrates its efforts on emerging enterprise and the related interests of companies with whom such enterprise trades.
With over 250 members, the BIA supports a wide range of sectors, majoring on the human health benefits of the technology and represents the interests of these innovative companies to a broad section of stakeholders from patient groups to politicians, advancing its members interests both within the UK and internationally to create a healthy UK bioscience sector which benefits society. For further information, please go to: www.bioindustry.org
The BIA events programme provides numerous opportunities for topical debate about emerging trends and key issues - plus excellent networking opportunities all year-round.
