Autumn Statement 2025: Investment, Innovation, and Insights from The Herald Budget Briefing

The Chancellor’s Autumn Statement sparked significant discussion across the business community, with many SMEs seeking clarity on what the announcements mean for investment, recruitment and long-term growth. This week, Minerva Innovation Group’s Director, Adam Pearce, joined The Herald’s expert panel to share insights on the implications for innovation and R&D funding. Below, we highlight the key themes that emerged from the session.

Minerva Innovation Group on the Panel

Director and founder Adam Pearce participated alongside representatives from Virgin Money, the CBI and the Fraser of Allander Institute, with Herald columnist and political commentator Brian Taylor chairing the discussion.

During the session, Adam reflected on the caution many businesses are feeling as costs rise and support mechanisms tighten. Speaking on the tone of the Autumn Statement, he observed that it felt like “an attempt to get a bigger slice of an ever-decreasing pie”. He also highlighted the need for stronger structural support for SMEs, particularly those working in innovation-led sectors, noting “When you consider that 96% of businesses in the UK are SMEs with 10 or fewer employees – surely we need to make it easier for them.”

This perspective aligned with a recurring theme across the panel: while fiscal stability is important, long-term policies that encourage investment and innovation remain limited.

Investment and Recruitment Pressures

CBI Director Michelle Ferguson spoke to ongoing challenges across the business landscape, explaining that “There is stalling investment and stalling recruitment, and that is not good for the economy.” The conversation also explored the impact of wage increases scheduled for 2026. As Adam noted, while rising wages support employees, employers must also consider the wider effect across pay structures, which for some SMEs “can cost tens of thousands of pounds.”

Panellists from Virgin Money and the Fraser of Allander Institute added further concerns around frozen tax thresholds and increasing employer costs, highlighting pressures that are likely to influence business decisions throughout 2025 and beyond.

Implications for R&D and UK Innovation

At Minerva Innovation Group, we see the effects of policy decisions first-hand. Many of our clients, from early-stage innovators to established scientific and technical SMEs, are navigating increased financial uncertainty at the same time that demand for research, development and innovation continues to grow.

Our role is to ensure that businesses can still access the R&D tax relief they are entitled to, even as the landscape shifts. Ethical, compliant and technically robust claims remain essential for long-term sustainability and growth. The panel discussion reinforced how important it is for SMEs to receive clear guidance during periods of economic change. Summarising the outcome of the Autumn Statement, Adam described it as “a short-term, placeholder sticking plaster with long-term objectives but no long-term delivery of policy.”

Our Commitment

Minerva Innovation Group will continue advocating for the innovative businesses that underpin economic growth across the UK and Ireland. Our mission, vision and values guide every aspect of our work.

MISSION

To provide an ethical, consultant-led service and advise SMEs on their R&D funding eligibility.

VISION

To ensure all qualifying SMEs can access R&D funding, enabling business growth and positive contributions to science.

VALUES

Honest. Diligent. Forward-thinking.

As we move into 2026, we remain committed to supporting SMEs, championing innovation and helping science-focused businesses thrive. If you would like to discuss how the Autumn Statement may affect your R&D funding position, contact us here, our team is always happy to help.