Rachel Reeves to announce £86bn for science and technology in spending review

Research into drug treatments and longer-lasting batteries will receive new funding as part of an £86 billion package for science and technology set to be announced in next week’s spending review.

Regions will be handed up to £500 million with local leaders given powers to decide how investment is targeted in their communities, the Department for Science, Innovation and Technology (DSIT) said.

The overall package, which will be announced as Chancellor Rachel Reeves sets out departmental spending plans on June 11, is expected to be worth more than £22.5 billion-a-year by the end of the decade.

DSIT said “every corner of the country” would benefit as local leaders are given a say on how the money is spent on leveraging expertise specific to their communities.

Biotech

In Liverpool, which has a long history in biotech, funding will be used to speed up drug discovery and in South Wales, which has Britain’s largest semiconductor cluster, on designing the microchips used to power mobile phones and electric cars.

The Chancellor said: “Britain is the home of science and technology. Through the Plan for Change, we are investing in Britain’s renewal to create jobs, protect our security against foreign threats and make working families better off.”

Science and Technology Secretary Peter Kyle said: “Incredible and ambitious research goes on in every corner of our country, from Liverpool to Inverness, Swansea to Belfast, which is why empowering regions to harness local expertise and skills for all of our benefit is at the heart of this new funding – helping to deliver the economic growth at the centre of our Plan for Change.”

Local leaders including North East Mayor Kim McGuiness and West Midlands Mayor Richard Parker welcomed the package, but research backers warned more is needed to secure Britain’s reputation for science.

John-Arne Rottingen, chief executive of Wellcome, Britain’s biggest non-governmental research funder, said: “The Government rightly acknowledges that investing in science and technology is a key way to boost the economy.

“But while it’s positive under the financial circumstances, a flat real-terms science budget, along with continuing barriers such as high visa costs for talented scientists and the university funding crisis, won’t be enough for the UK to make the advances it needs to secure its reputation for science in an increasingly competitive world.

“The UK should be aiming to lead the G7 in research intensity, to bring about economic growth and the advances in health, science and technology that benefit us all. We look forward to seeing the full details at the spending review.”

Plan

Meanwhile, the Institute of Physics called for a longer-term strategy for science, including a plan for teachers and other members of the skilled workforce needed to deliver advances.

Tony McBride, director of policy and public affairs at the institute, said: “It’s good to see the Government recognise the power of science and innovation to transform lives and grow prosperity in every part of the UK.

“But to fully harness the transformational potential of research and innovation – wherever it takes place – we need a decade-long strategic plan for science. This must include a plan for the skilled workforce we need to deliver this vision, starting with teachers and addressing every educational stage, to underpin the industrial strategy.

“We hope that the Chancellor’s statement on Wednesday will set out such a vision.”

Universities UK said the Government had made a “smart investment” and academia would put its “shoulder to the wheel” behind the plans.

Vivienne Stern, chief executive of the group representing 142 higher education providers in Britain, said: “The UK has a real opportunity to sow the seeds of long-term growth, benefiting all parts of the UK – with universities spread right across the country working with industry and public sector bodies to turn discoveries into economic success.

“They stand ready to double down with government, building stronger links with sectors of the economy where we have real room to grow.

“This creates good jobs and attracts investment everywhere from Swansea to Aberdeen, from Barrow to Plymouth.”

Secretary of State for Wales Jo Stevens said: “Wales is home to a growing tech sector and this significant investment from the UK Government will help it develop and expand even further.

“As we deliver our Plan for Change we are investing in innovation and research, creating more opportunities in the industries of the future and driving economic growth across Wales and the UK .”