R&D gets record £20.4 bn investment in Budget

The Budget will fully fund the UK’s association with Horizon Europe, providing scientists and innovators access to the world’s largest collaborative funding scheme…reports Asian Lite News

At Wednesday’s Budget the Chancellor has announced the highest ever level of government investment of £20.4 billion in research and development for next year, reinforcing the government’s commitment to back the UK’s R&D ecosystem to drive economic growth and achieve its five national missions.

The Budget will fully fund the UK’s association with Horizon Europe, providing scientists and innovators access to the world’s largest collaborative funding scheme, with over £80 billion available for cutting-edge projects under the EU scheme. DSIT’s own R&D budget has increased to £13.9 billion, and core research funding has also been increased to a record £6.1 billion, bolstering the UK’s leading research base. 

A significant part of this Budget is dedicated to the UK’s life sciences sector, a cornerstone for positioning the UK as a leader in science and innovation, through a £520 million commitment to the Life Sciences Innovative Manufacturing Fund.

Additionally, the Chancellor announced funding for several other programmes to be led by DSIT. Together, these investments underscore the importance of science and technology in driving economic growth essential to raising living standards and funding public services, positioning the UK at the forefront of global innovation and progress.

Science and Technology Secretary Peter Kyle said, “The Autumn Budget is clear recognition of this government’s view that driving economic growth and improving people’s lives cannot be done without investing in science and technology. That’s why we are taking R&D investment to record levels and matching our words with action by empowering researchers and businesses to solve real-world problems, grow emerging new industries and create high-quality jobs.”

DSIT’s Autumn Budget announcements include: Life Sciences Innovative Manufacturing Fund. The Chancellor unveiled the Life Sciences Innovative Manufacturing Fund (LSIMF), starting with £70 million in grants, as part of a long-term commitment of up to £520 million to secure major life sciences manufacturing investments across the UK.

This fund strengthens the country’s ability to develop and produce life-saving treatments, ensuring quicker access to vital medicines and bolstering NHS stability.

The LSIMF is expected to unlock up to £1.8 billion in private investment, supporting thousands of high-skilled jobs and driving economic growth nationwide, while preparing the UK for future health emergencies and enhancing NHS resilience.

The new R&D Missions Programme (RDMP), which we are initially investing £25 million for, will address specific challenges our National Missions face, such as advancing healthcare and transitioning to cleaner energy. Partnering with private and third-sector organisations, this initiative aims to turn scientific advancements into real-world benefits, improving public services and quality of life across the UK.

To support the UK’s Growth Mission, the government is investing £40 million over five years in a Proof of Concept Fund, to turn pioneering university research into successful companies. This initiative aids researchers in bringing their innovative ideas to the market, creating high-potential start-ups that drive job creation and economic growth.

Successful spinouts like Pragmatic Semiconductor, which raised £182 million to help open its first manufacturing facility and create 500 high-skilled jobs, or Oxford Nanopore with over 1,000 employees, highlight the potential impact of research-led innovation.

The government has extended for a further year, two key programmes that promote innovation across UK regions and manufacturing. The Innovation Accelerator programme will continue for another year, focusing on high-potential clusters in the Glasgow City Region, Greater Manchester, and the West Midlands.

Successes include Chemify, a Glasgow-based spin-out developing new methods for chemical manufacturing, which has since attracted £28 million in private funding, and the Biochar Cleantech Accelerator in the West Midlands, which is creating new products to support green growth. These projects demonstrate the benefits of R&D across the country and its support for regional economic growth.

Meanwhile, the Made Smarter Innovation programme will continue to be funded with up to £37 million, and empowers manufacturers to adopt digital technologies, enhancing productivity and sustainability by connecting digital solution providers with industry.

The government will invest at least £500 million over the next year in Project Gigabit and the Shared Rural Network, accelerating the rollout of digital infrastructure to underserved regions in the UK. The funding aims to deliver full gigabit coverage by 2030, ensuring fast, reliable internet access for communities and businesses, enabling equal access to digital opportunities nationwide.

DSIT will invest up to £80 million to enhance corporate functions across nine government departments. It aims to transform shared services and streamline systems, making them more efficient, modern, and cost-effective, delivering better value for taxpayers.

Bill Gates criticises cut to overseas aid

Bill Gates has joined a chorus of international development voices criticising the government cutting billions in overseas aid spending in the Budget. On Wednesday, Chancellor Rachel Reeves chose not to renew a £2.5bn top-up to the UK’s overseas aid budget introduced by the Tories to compensate for the huge amount of foreign aid being spent housing refugees and asylum seekers in hotels.

The Treasury announced government departments would spend £13.3bn on overseas development assistance this financial year – meeting its target of spending 0.5% of national income on aid. Gates, the billionaire co-chair of the Bill & Melinda Gates Foundation, called the Budget “a disappointing outcome for the world’s most vulnerable people”.

The Tory foreign aid top-up has been in place for two years – ensuring aid spending in 2023 amounted to 0.58% of national income, some £15.3bn. Last year, the Home Office spent £4.3bn on asylum seekers in the UK – more than a quarter of the foreign aid budget.

In its so-called “red book” setting out the Budget details, the Treasury acknowledged the government had spent “an increasing proportion” of overseas aid on refugees and asylum seekers which had “significant implications” for aid spending overseas. “The government is committed to ensuring that asylum costs fall, has taken measures to reduce the asylum backlog and is ending the use of expensive hotel accommodation,” the Treasury said.

“These plans should create more space in the [Official Development Assistance] budget to spend on our international development priorities overseas.”

International aid charities were dismayed at what they said was a cut worth almost £2bn in the UK’s aid priorities overseas. Following the announcement, Gates said the UK “withdrawing” from its overseas aid role “leaves us all at greater risk”.

“Today’s Budget is a disappointing outcome for the world’s most vulnerable people,” he said in a statement. I hope to see the UK chart a path back to the commitments that demonstrate this global outlook in action.”

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