OPINION6 January 2011
CEOs of three British companies are calling for tax relief on market research spend. There’ll be no complaints here, surely, but it doesn’t exactly fit with the government’s cost-cutting agenda.
Here’s an idea that should go down well with our readers, but which may be a harder sell among politicians. From the Financial Times:
“Businesses should enjoy tax relief on market research for new consumer products and services, according to a group of successful British entrepreneurs, in the same way that existing tax breaks are designed to encourage research and development for new technologies.”
The idea comes from Paul Lindley, the founder of children’s food company Ella’s Kitchen, and it has the support of the CEOs of Lovefilm and King of Shaves.
Lindley makes the case that consumer brands are like new technologies in that they help build better products, so supporting investment in insight should deliver similar benefits to the UK economy.
He makes a good argument, but government ministers will need more evidence if they’re to be convinced to give back some of the tax revenue they’ve earmarked for deficit reduction.