After several years of reform, shifting rules and heightened scrutiny, the government’s decision at the last Budget to keep research and development (R&D) tax relief policy largely unchanged for a second consecutive year sent a clear message to industry: the system has entered a more predictable phase.

For innovative businesses, particularly SMEs, this stability matters. It rebuilds confidence, encourages investment, and signals that the UK intends to remain a competitive home for R&D.

Alongside this, the government has shown renewed commitments in the Entrepreneurship Prospectus to making the UK ‘one of the most supportive environments globally for founders and innovators’.

HMRC’s latest efforts to raise standards across the R&D tax relief landscape, including the new Research and Development Expert Advisory Panel (RDEAP), project eligibility tool and the forthcoming advance assurance pilot, should all be seen as part of a wider direction of travel.