British prime minister to pledge investment into R&D

Many firms want a “soft” Brexit, which retains trade links, rather than a “hard” Brexit, which would make curbs in migration a priority and risk full access to the European Union market.

In her first speech to a CBI conference, she will promise £2bn of investment in science and research and tax breaks for innovators in the Chancellor’s Autumn Statement. May, who was appointed prime minister shortly after Britain voted in June to leave the European Union, has been clear that she will deliver Brexit, but she has offered little detail.

“To do things differently”.

“She basically said [Brexit is] a bit of a wake-up call because the working people in the country don’t like to see the businesses get very rich while they’re getting poorer”.

Ryan Bourne, head of public policy at the Institute of Economic Affairs, said the speech signalled an “ideological change” in the direction of the Conservative Party towards a more interventionist approach. But following a frosty reception from big business, she has now clarified it will not be mandatory.

Proposals will be set out in a Government Green Paper kicking off a period of consultation later this autumn. “It will be a question of finding the model that works”. “We do not believe that encouraging or mandating employee representation on boards will, in isolation, create a strong system of corporate governance“, the company said.

But unions reacted angrily, claiming that Mrs May was rowing back on previous commitments.

In that respect, her speech included a reference to the idea that trade union representatives would be placed on the boards of United Kingdom companies, something for which she had recently advocated. Mr Drachsler said that, to make the most of Brexit, government and business had to do more than just work together.

This could have implications for the Irish economy, as the rate cut will give foreign firms an incentive to move to the UK.

Firms viewed the United Kingdom as a world beater in scientific research and tax incentives to support investment, but not in other areas such as grant funding.

Pat McFadden MP, speaking for the Open Britain campaign, said: “It is good that the Prime Minister understands the dangers of a cliff edge for the economy during the Brexit negotiations”.

In Brussels, Mr Davis met the European Commission’s chief Brexit negotiator Michel Barnier to discuss an “orderly” withdrawal process, aides said.

“It is not about propping up failing industries or picking winners, but creating the conditions where winners can emerge and grow”.

She also promised that government would look to source more supplies and services from a greater number of small businesses, via a Small Business Research Initiative. “We will work with you to achieve it, and I know you will rise to the challenge”.

“There will be a number of ways to do it”.

Theresa May is to attempt to woo Britain’s bosses with the promise of tax cuts and a new Government approach to business: “Stepping up, not stepping back”.

Asked about the possibility that the United States could cut rates as low as 15pc and whether Britain would match that, Ms May’s spokeswoman said any such talk was “speculative”.

She added that when some bosses “appear to game the system and work to a different set of rules, we have to recognise that the social contract between business and society fails and the reputation of business as a whole is undermined”.

Since her first speech as prime minister, outside the door of 10 Downing Street, May has pledged to govern for those left behind by modern capitalism – the “just about managing” – or Jams, as Whitehall officials now call them.

Prime Minister Theresa May has promised to invoke Article 50 by the end of March, which will start a two-year countdown for Britain’s exit.

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