business

The Government Signals Where It Wants To Lead

NCUB welcomes today’s clearer direction on national R&D priorities.

Image by andreas_baetz from Pixabay

In a recorded speech at UKRI’s Innovation for Growth summit, Secretary of State for Science, Innovation and Technology Liz Kendall MP set out headline allocations for UKRI’s budget, offering the strongest indication yet of a more focused national research agenda.

Of the £38.6 billion allocated to UKRI over the next five years, £14 billion will support curiosity-driven research. The remainder will be directed towards applied research, impact and capability-building: £8 billion for R&D aligned to national priorities, £7 billion to help businesses scale, and £7 billion to strengthen the UK’s research and innovation system.

It was encouraging to hear the Chancellor and Sir Ian Chapman together reinforce a much clearer national direction for R&D. Businesses have long needed consistency and focus, and this shift towards defined priorities is a vital step in rebuilding confidence. If the government continues to send clear, stable signals and back them with targeted investment, the UK will be far better placed to attract long-term business commitment to innovation and drive sustained economic growth.

Dr Joe Marshall, Chief Executive of NCUB

Although the overall budget envelope was already known, today’s speech underscores a strategic shift towards impact-orientated research, industrial capability and clearer alignment with national priorities, alongside continued investment in fundamental science.

This comes at a pivotal moment. Britain’s business R&D engine is losing momentum — private investment fell by 6.3% in real terms between 2021 and 2023, equating to roughly £3.4 billion less spent on business-led R&D. NCUB’s business-led R&D taskforce has emphasised the need for sharper prioritisation of public investment to help reverse this trend. Today’s signals, ahead of Wednesday’s Budget, are therefore welcome.

“As the minister acknowledged, the UK’s R&D effort is spread too thin. Businesses face inconsistent signals about where the UK intends to lead globally. Clearer priorities will help concentrate effort and rebuild long-term confidence in future investment.”