Hunt’s R&D relief cut will drive small motorsport firms out of business Figures from the Office for National Statistics show firms employing fewer than 250 staff hiked research and development (R&D) spending by £4.3bn to £24.3bn since 2018, while larger firms' spending rose by £1.6bn to £22.6bn. However, the Chancellor Jeremy Hunt’s decision to scale back R&D tax breaks for smaller firms in last week’s Autumn Statement has riled business groups. “This should have been a moment of triumph for the small business community and the UK economy. But the Chancellor has turned triumph to disaster, with the self-inflicted R&D credit crunch set to cut a swathe through start-ups, spin-out and advanced engineering companies,” said Tina McKenzie, advocacy chair of the Federation of Small Businesses. “Driving small R&D firms out of business is economic vandalism.”