The UK government has announced that the Department for Business Energy and Industrial Strategy (BEIS) will receive the largest ever R&D budget of £39.8bn through to 2025. The innovation budget aims to propel the UK into a “science-superpower” status in the global market, to improve R&D spending across the board in the UK.
The budget will be allocated between the partner organisations and help deliver the Government’s proposed Innovation Strategy, it includes full funding for EU programmes, support for the UK’s Horizon Europe scheme, Euratom Research & Training, and also Fusion for Energy. The UK’s Space Agency’s budget will also reach new heights, with hopes for the collective of innovative programmes to succeed with delivering strategic advances in science and technology, boosting private investment.
“For too long, R&D spending in the UK has trailed behind our neighbour’s – and in this country, science and business have existed in separate spheres.” – Kwasi Kwarteng, Business Secretary.
The innovation budget aims to support climate change efforts, bioenergy, low-carbon construction, recycling, advanced materials, clean tech, offshore wind and AI, all of which the UK already has strong competitive advantages to the rest of the globe, and promising industrial strength. A pledge of £797m has been promised to the Met Office and £708m for the uk atomic Energy Authority which is the organisation that’s responsible for programmes surrounding work to scale nuclear fusion technologies.
These ambitious R&D investment plans paired with the generous R&D Tax Credits scheme is enough to give businesses the confidence to invest in innovation again after the devastating effect on the economy from the pandemic. Recent research has found that for every £1 of public expenditure spent on R&D generates roughly £2 of additional private investment, a promising figure for investors and business owners combined.
“My department’s £39.8 billion R&D budget – the largest ever R&D budget committed so far – will be deployed and specifically targeted to strengthen Britain’s comparative advantages, supporting the best ideas to become the best commercial innovations, and securing the UK’s position as a science superpower.” – Kwasi Kwarteng, Business Secretary.
With the upcoming Spring Statement announcement, there are high hopes for the R&D Tax Credits scheme, and the new largest-ever R&D budget gives confidence that the UK will meet it’s goals such as R&D investment increasing to 2.4% of GDP by 2027 and becoming Net-Zero by 2050.
To find out more about the new R&D Budget, click here.
Alternatively, to find out more about the R&D Tax Credits scheme, click here.