Record public research funding will be explicitly directed towards supporting promising scale-ups, turbocharging economic growth and job opportunities through the government’s Modern Industrial Strategy, and improving lives, as part of a shake-up of public R&D announced today.

The move reinforces the government’s push for national renewal, a Britain built for all, and a fairer economy that works for and rewards working people – work which will be further cemented through announcements at the Budget, later this week.

Addressing research funders and major business leaders from the UK and beyond, the Science and Technology Secretary Liz Kendall said that public R&D funding had for too long been spread thinly across multiple priorities and projects and now was time for ‘doing fewer things, better’.

She outlined a ‘no-compromise’ approach that prioritises funding for the companies with the highest potential to grow into industry titans and into the sectors where the UK already retains a competitive advantage. Setting these priorities clearly, will support the national effort to build strong foundations for our economy and secure our country’s future.

UKRI is the country’s largest public research funder, giving it a central role in ensuring public money is invested in ambitious, pioneering research that will benefit the whole of the UK and provide a clear return on investment for hardworking taxpayers.

“Scientific research and development is fundamental to building a better Britain: from new treatments for cancer, to breakthroughs in clean, affordable energy,” Science and Technology Secretary Liz Kendall said at the UKRI Growth Summit in London.

“There is no route to stronger growth in this country, no answer to how we pay our way, or compete with the rest of the world, without science, technology and innovation leading front and centre. But we must be smarter about what we prioritise, for these efforts to succeed.

“That is what today is all about. And by increasing funding for critical technologies like AI and engineering biology where the UK already excels, we can go even further.”

£9 billion of UKRI’s record £38.6 billion settlement will go towards backing the fields of research in which the UK is among the strongest in the world, like AI and quantum, which could deliver breakthroughs in healthcare or pioneering cybersecurity tech to keep our country safe from threats.

Funding for engineering biology will increase nearly three-fold, to £644 million, while funding for AI will more than double to £1.6 billion.

The International Monetary Fund (IMF) estimates that breakthroughs in AI alone could boost productivity by as much as 1.5 percentage points a year, which could be worth up to an average £47 billion to the UK each year over a decade.

Quantum computing meanwhile could add over £11 billion to the UK’s GDP by 2045.

£8 billion will be allocated to funding research into the government’s priorities, including the Industrial Strategy’s priority areas and others like climate resilience and flood defence.

While another £7 billion will specifically fund innovative company growth to unlock the next generation of UK industry titans.

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The third area that will see funding is £14 billion specifically for curiosity-driven research, which has been at the heart of great discoveries for generations – from the internet to medical breakthroughs that can treat a range of genetic diseases.

Universities will be key beneficiaries from UKRI’s record funding for R&D. Their core block grant and commercialisation funding from DSIT will grow in line with expected inflation over the Spending Review period.

Attracting top science and research talent to the UK, especially in the 8 key sectors of the Modern Industrial Strategy, is essential for achieving cutting-edge breakthroughs that economic growth, jobs, and entire new industries will be founded upon.

The Science Secretary has also revealed the progress being made in those efforts – with the first 4 world-leading researchers relocating to the UK through the £54 million Global Talent Fund. These lead researchers are expected to also bring up to 10 individuals to support their research projects from abroad.