Budget delivers financial heft to Labour’s science R&D promises

A series of major funding packages focused upon R&D in universities, manufacturing, industry and sustainability, with likely wide-ranging implications for the laboratory sciences.

Chancellor Rachel Reeves said the £20.4 billion earmarked for R&D for the 2025/26 financial year represented the ‘highest ever level of government investment’ of this kind.

Chief conduit for this is the Department of Science Innovation and Technology (DSIT), which benefits from an increase to £13.9 billion in its own R&D budget, together with a total of £6.1 billion for core research funding.

A £520 million grant to the Life Sciences Innovative Manufacturing Fund is intended to ensure the UK builds on a reputation as a leader in the field. Its success will depend in part, however, on its ability to fulfil the aim of attracting up to £1.8 billion in complementary private investment.

Additionally, the promise to fully fund Horizon Europe guarantees the country’s access to the world’s largest collaborative funding scheme, valued at more than £80 billion.   

Further encouragement for early research and innovation comes in the form of a specific commitment to boost ‘proof of concept’ funding to £40 million over five years, intended to help turn innovative research into viable start-ups. Pre-Budget, there had been fears that the c£20 million over three years committed by the previous Tory administration might have been ditched.

Manufacturing also provided an arena for research funding with a vow to continue two key regional programmes fostering innovation. These include the Innovation Accelerator based around industrial clusters in Glasgow, Manchester and the West Midlands, and also the Made Smarter Innovation aiding SME digital transition. Further investment in green technology and energy, including hydrogen development, carbon capture and offshore wind energy will likely provide further opportunities.

The Government announced too a review led by chief scientific adviser Dame Angela McLean and National Technology Adviser Dr Dave Smith, to identify current barriers to adopting transformative technologies.

News of the Budget initiatives has been strongly welcomed by science and industry leaders critical of a perceived lack of strategic direction from preceding Conservative administrations and concerned at the uncertainty generated by the UK’s uncoupling from the EU-based Horizon Europe.

However, key initiatives began under the final Tory administration headed by then prime minister Rishi Sunak. These included the UK Science and Technology Framework launched with £0.5 billion, re-entry into Horizon Europe, the £100 million investment in the creation of the AI Life Science Accelerator Mission and commitment to proof of concept funding. Additionally, Sunak was responsible for the creation of the Department for Science, Innovation and Technology with full Cabinet status.

For more on the 2024 Autumn Budget, click here.

Pic: Chokniti Khongchum