'Startups need more than slogans': Hari Sandhu on how Britain can unlock its next wave of innovation For Britain's startup economy to thrive, the government must move beyond policy announcements and deliver sharper tools that actually reach the innovators.

That's the message from Hari Sandhu, founder and executive chair of EmpowerRD, a firm working with high-growth companies to unlock R&D tax incentives and navigate the complex mechanics of startup finance.

While the UK has earned its reputation as a promising hub for tech and innovation, Sandhu believes more can be done to simplify the startup journey - especially when it comes to accessing existing government support.

"For any startup, the ability to grow depends on accessing the right resources," he says. "Whilst the UK Government provides several outlets to support businesses, many companies still struggle to access these resources correctly."

At the heart of Sandhu's argument is the Research & Development tax relief scheme - a government initiative designed to refund companies investing in innovation. Though long-standing, he says it remains "one of the most impactful mechanisms to support growth and innovation for SMEs," but one that is often misunderstood or underutilised.

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"There is a real opportunity for the government to continue supporting startups by enhancing education around eligibility, compliance and practical steps to making a claim," Sandhu explains. Better guidance, in other words, could unlock millions in growth potential.

EmpowerRD recently helped the global intelligence platform Streetbees streamline its own R&D tax claim - with eye-catching results. "Streetbees has seen over 170% growth in claim value, avoided HMRC compliance checks entirely, and reduced manual and administrative effort," he notes. "This has allowed them to confidently plan their next stages of expansion."

It's this kind of outcome that Sandhu says should be the norm - not the exception - for early-stage firms. "One of the biggest benefits of the R&D Tax Credit Scheme is that it provides non-dilutive funding - allowing businesses like Streetbees to recover a portion of their R&D expenditure without giving up equity, or part of their business," he says.

However, navigating the system is getting harder. "Recent changes to eligibility, rates, and compliance processes mean that even well-established startups risk missing out if claims aren't properly managed," Sandhu warns. "With tighter deadlines and more scrutiny, startups must prioritise staying organised, documenting R&D work clearly, and getting specialist support where needed."

Government support, he argues, is only one part of the puzzle. Startups also need access to venture capital, talent, and expert networks. "Access to expertise and specialised resources plays a significant role," Sandhu says. "Fostering these partnerships between startups and large companies or even academic institutions will help speed up innovation."

The UK government recently pledged £13.9bn in R&D funding, a move Sandhu welcomes — but he cautions that scale is only one metric of success. "To build on this, having a simplified process of expanding into international markets would make it easier for UK-based organisations to scale globally," he says. "Innovation doesn't happen in isolation – having stronger government incentives could do more to help companies."

And in a global race for the brightest minds, immigration policy and talent attraction must be front and centre. "Startups need access to the best talent in the globe," he says. "The UK should continue to position itself as a place where this set of talent could succeed... and a system that supports long-term, sustainable growth."

In short, Sandhu sees plenty of promise in the UK's innovation landscape - but also believes it's time to strip away the friction and make growth easier, faster and smarter for the entrepreneurs powering the next generation of British business.

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