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UK needs to embrace new technology to increase Economic growth

Increasing working hours has not resulted in increased economic growth when compared to other countries because the UK is not embracing new technology, says David Hough.

World Creativity and Innovation Day is a reminder that businesses need to continue to adapt and find new ways of working, embrace new technology, and bridge the productivity gap.

We are in a technological revolution that businesses need to embrace. They should not stand still despite the fact that in an uncertain economy many are focused on cash flow.

The UK ranked 31 out of 35 countries when measuring productivity and GDP growth between 2017 and 2019 according to the ONS.

Last year we saw companies quickly adopting new ways of working to reduce the disruption caused by the outset of the pandemic. This needs to continue with investment in new technology and revisions to business practices.

Business owners will be understandably concerned about cash flow as they reopen and the economy begins to recover more generally, but now is the time to invest in new technology.

There is support available. Companies can look to utilise the Corporation Tax super deduction on capital elements of their investment, potentially saving tax at an enhanced rate. Research and Development Tax credit reliefs can put cash back in the pockets of business owners who are solving problems through innovation.

Other businesses could look to access to the Help to Grow scheme to gain access to grants of up to £5,000 towards software that will improve productivity.

Would you like to know more?

If you would like to discuss any of the above guidance, please get in touch using the contact details on this page or through your usual Blick Rothenberg contact.

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