The UK is set to unleash a transformative £86bn investment to accelerate growth in science and technology as Chancellor Rachel Reeves prepares to announce a sweeping funding package in her upcoming Spending Review.
Described as a defining moment for Britain’s economic future, the investment will target the country’s fastest-growing sectors – tech, life sciences, advanced manufacturing, and defence – forming the backbone of a new modern industrial strategy.
This landmark announcement signals a major shift in national priorities, with science, research, and innovation now firmly at the centre of the government’s agenda for renewal.
Commenting on the investment, Chancellor Reeves 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.”
Major investment in research and development
At the heart of the initiative is a pledge to deliver more than £22.5bn annually to research and development (R&D) by 2029/2030.
This long-term commitment is expected to fuel breakthroughs in AI, drug development, and battery technology while creating high-quality jobs and positioning the UK at the forefront of future technologies.
The investment underscores a strategic pivot towards R&D as an engine of economic growth.
Research shows that every £1 invested in R&D yields up to £7 in economic benefit, and often doubles in private investment.
Moreover, businesses receiving initial R&D support see job and revenue increases of more than 20%.
Empowering regional innovation hubs
Reeves’ plan also decentralises decision-making, giving local leaders control through the new Local Innovation Partnerships Fund.
This allows regions to tailor research strategies to local strengths – whether it’s drug discovery in Liverpool, semiconductor design in South Wales, or defence innovation in Northern Ireland.
The government’s goal is clear: empower communities to become self-sustaining innovation hubs that can attract investment and create high-skilled jobs across the UK.
These regional “innovation clusters” build on successful pilot schemes like the Innovation Accelerator, which has already delivered results in Greater Manchester and the West Midlands.
Transformational projects already underway
Early successes include Manchester’s advanced diagnostics work on heart, liver, and lung conditions, as well as the Moonbility AI platform in the West Midlands, which helps train operators predict transport disruptions in real time, thereby enhancing passenger experience and efficiency.
Another £5m will go toward linking two of the UK’s most dynamic regions – Manchester and Cambridge – in a new collaborative partnership.
This pilot will test novel ways for cities, universities, and businesses to work together and attract further investment.
Science and Technology Secretary Peter Kyle added: “R&D is the very foundation of the breakthroughs that make our lives easier and healthier – from new medicines enabling us to live longer, more fulfilled lives to developments in AI giving us time back, from easing our train journeys through to creating the technology we need to protect our planet from climate change.
“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 benefits is at the heart of this new funding.”
A future-proofed Britain
The announcement comes just ahead of London Tech Week, highlighting the UK’s ambition to remain at the cutting edge of science and technology.
With 3 million jobs already tied to R&D, the government’s renewed focus promises to unlock further potential and lay the foundation for decades of growth.
This landmark investment positions the UK not only to lead in discovery but to secure prosperity across all regions – making innovation a national mission.
