A UK funding boost for research and development breakthroughs is set to improve lives, create jobs, and grow the economy.
From the tech that screens airport luggage to keep citizens safe, to life-changing new medical treatments, the inventors and innovators behind British R&D breakthroughs that drive growth and improve daily lives are in line for a £55bn funding boost to take their work to the next level.
The Department for Science, Innovation and Technology confirmed long-term funding for the UK’s research agencies and bodies, with bumper investment for those making science and tech breakthroughs.
These allocations provide visibility and clarity into the development of DSIT’s R&D plans, with the Department’s overall R&D budget growing in real terms.
How is private investment boosting UK research and development?
The Science and Tech Secretary announced the new allocations while visiting IBM’s London base to see first-hand how private investment is supporting the strength of the UK’s public R&D offer, boosting work from quantum to robotics.
Publicly-funded UK research has already resulted in some of the most important breakthroughs of recent years, including the first cutting-edge antibody products which have transformed some cancers from a guaranteed death sentence to manageable chronic conditions.
Moreover, analysis published today shows the value of private investment in research and development, with every £1 of private investment in R&D, on average, crowding in a further £2 in private investment.
Science and Technology Secretary Liz Kendall stated: “Backing our best and brightest researchers and innovators is essential. They are making the impossible possible, from health to clean energy and beyond.
“By investing in their work, we are backing the long-term success of the UK and paving the way for breakthroughs that will help us all live and work better.”
Public funding paves the way for huge industry breakthroughs
Additionally, the analysis highlighted the value of public investment in R&D to the UK, with every £1 spent delivering £8 in net economic benefits over the long term.
In the six years after receiving their first R&D grant funding, employment increases in the average business by 21% and turnover grows by 23% relative to similar firms that didn’t get support.
Some of the UK’s most innovative businesses have benefited from public R&D funding, which has helped propel them to success.
From health tech to clean energy, the possibilities are endless
IBM is working in partnership with publicly-funded researchers through UKRI’s £210m Hartree Centre to bring AI, quantum computing, and supercomputing to discover new medicines and breakthroughs in clean energy.
The company is also one of several technology vendors providing access to cutting-edge quantum computing resources via the National Quantum Computing Centre, which will benefit from a first-of-its-kind 10-year government funding commitment.
Oxford Nanopore, which is developing the world’s first pandemic early warning system, and Cobalt Light Systems, who make the tech that’s used to screen liquids at airports, have both benefited from UKRI funding in previous years.
Today, Oxford Nanopore is an FTSE 250-listed company, while Cobalt Light Systems’ equipment is used in over 70 airports worldwide.
British quantum firm Oxford Quantum Circuits, meanwhile, has raised $100m in Series B funding and deployed the first-ever quantum computer in New York City.
R&D funding creates millions of new jobs and grows the economy
R&D is also at the heart of around three million jobs in the UK, with the power to create many more as discoveries advance.
DSIT’s overall R&D budget will grow in real terms over the Spending Review period, totalling £58.5 billion from 2026/2027 to 2029/2030.
The funding being confirmed today comes from the transformative £86bn for public R&D, announced by the Chancellor at the Spending Review, of which £55bn is being detailed today.
Funding for some further R&D programmes will be confirmed in due course.
