R&D Investment Is Welcome, But Stronger Support For Our Universities Is Vital, Says NCUB

"In their first Budget, the Government delivered for UK innovation and research and development (R&D). We warmly welcome the Government’s acknowledgement that research and innovation is a vital and critical driver of growth, and its headline announcement of further investment into R&D is a positive step forward. We applaud the Government for recognising that UK R&D is crucial for future competitiveness, growth, clean energy goals, healthcare advancements, and national security.

However, it is clear that the UK needs to truly shift the dial on private investment, including private investment into R&D. This requires a competitive and supportive environment. The cumulative impact of tax rises will have an impact on investment and could make it harder for businesses to start, scale and grow here.

Businesses tell us that the strength of the UK’s university system is a significant reason why they choose to invest here. In many parts of the UK, universities are major employers and economic engines. This Budget may well have significant unintended consequences for the sustainability of the UK’s world-leading university system. The prospect of increased employer National Insurance contributions will significantly raise staffing costs. Just the change in rate to 15% will cost universities well in excess of £150 million a year, and the changing threshold is likely to have an even greater impact. Only through more sustainable funding can universities focus on their public mission rather than financial survival. We implore the Government to recognise this, before it’s too late.