Business investment in the health and social care sector has grown by 55% in a year amid the carnage of coronavirus, analysis by specialist tax relief consultancy Catax shows1.
Total business investment in the sector grew to £1.46billion in the first quarter of 2020, up from £940million for the same period in 2019, latest ONS figures released yesterday show1.
This bucks a wider slowdown in the British economy, which shrunk by 10.4% in the three months to April 20202.
Overall business investment across UK industry rose 0.8% compared with the first quarter of 2019.
The health and social work industry has seen investment rise as it leads the frontline response to the coronavirus pandemic.
Mark Tighe, CEO of tax relief consultancy Catax, comments:
“The nation spent ten weeks applauding the key workers in the NHS and social care who have led the frontline response, and it’s reassuring to see that business investment has also been increasing at the same time.
“The health industry is going to be key to getting the country running again, so this increased investment is a sign of how important its success is going to be to the rest of us.
“Research and development is going to be vital in this area, and many medical businesses should be able to claim tax credits of various kinds on the money they have invested.”