Measures to encourage spending on research and development in Budget 2026 have unlocked investment into the sector, according to a new KPMG report. The budget enacted an increase to the research and development (R&D) tax credit by five percentage points to 35 per cent. The Big Four accounting firm collected insights from 285 companies actively investing in research, development and innovation (RDI) activities across different sectors. Investment in research, development and innovation is “critical for long-term economic growth and job creation across the country”, Ken Hardy, the head of KPMG’s research, development and innovation incentives practice, said on publication of the report. The survey also sought companies’ perspectives on the impact of an innovation tax credit.
