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In her Autumn Statement on Wednesday, Chancellor Rachel Reeves announced the highest ever level of government investment of £20.4bn in research and development for next year.
The Budget will fully fund the UK’s association with Horizon Europe, providing scientists and innovators access to the world’s largest collaborative funding scheme, with over £80bn available for cutting-edge projects under the EU scheme. DSIT’s own R&D budget has increased to £13.9bn, and core research funding has also been increased to a record £6.1bn, bolstering the UK’s leading research base.
A significant part of this Budget is dedicated to the UK’s life sciences sector, a cornerstone for positioning the UK as a leader in science and innovation, through a £520m commitment to the Life Sciences Innovative Manufacturing Fund.
Additionally, the Chancellor announced funding for several other programmes to be led by DSIT. Together, these investments underscore the importance of science and technology in driving economic growth essential to raising living standards and funding public services, positioning the UK at the forefront of global innovation and progress.
Science and Technology Secretary Peter Kyle said: “The Autumn Budget is clear recognition of this government’s view that driving economic growth and improving people’s lives cannot be done without investing in science and technology.
“That’s why we are taking R&D investment to record levels and matching our words with action by empowering researchers and businesses to solve real-world problems, grow emerging new industries and create high-quality jobs.”
DSIT’s Autumn Budget announcements include:
The Chancellor unveiled the Life Sciences Innovative Manufacturing Fund (LSIMF), starting with £70m in grants, as part of a long-term commitment of up to £520m to secure major life sciences manufacturing investments across the UK.
This fund strengthens the country’s ability to develop and produce life-saving treatments, ensuring quicker access to vital medicines and bolstering NHS stability.
The LSIMF is expected to unlock up to £1.8bn in private investment, supporting thousands of high-skilled jobs and driving economic growth nationwide, while preparing the UK for future health emergencies and enhancing NHS resilience.
The new R&D Missions Programme (RDMP), which the government is initially investing £25m for, will address specific challenges our National Missions face, such as advancing healthcare and transitioning to cleaner energy. Partnering with private and third-sector organisations, this initiative aims to turn scientific advancements into real-world benefits, improving public services and quality of life across the UK.
To support the UK’s Growth Mission, the government is investing £40m over five years in a Proof of Concept Fund, to turn pioneering university research into successful companies. This initiative aids researchers in bringing their innovative ideas to the market, creating high-potential start-ups that drive job creation and economic growth.
Successful spinouts like Pragmatic Semiconductor, which raised £182m to help open its first manufacturing facility and create 500 high-skilled jobs, or Oxford Nanopore with over 1,000 employees, highlight the potential impact of research-led innovation.
The government has extended for a further year, two key programmes that promote innovation across UK regions and manufacturing. The Innovation Accelerator programme will continue for another year, focusing on high-potential clusters in the Glasgow City Region, Greater Manchester, and the West Midlands.
Successes include Chemify, a Glasgow-based spin-out developing new methods for chemical manufacturing, which has since attracted £28m in private funding, and the Biochar Cleantech Accelerator in the West Midlands, which is creating new products to support green growth. These projects demonstrate the benefits of R&D across the country and its support for regional economic growth.
Meanwhile, the Made Smarter Innovation programme will continue to be funded with up to £37m, and empowers manufacturers to adopt digital technologies, enhancing productivity and sustainability by connecting digital solution providers with industry.
The government will invest at least £500m over the next year in Project Gigabit and the Shared Rural Network, accelerating the rollout of digital infrastructure to underserved regions in the UK. The funding aims to deliver full gigabit coverage by 2030, ensuring fast, reliable internet access for communities and businesses, enabling equal access to digital opportunities nationwide.
DSIT will invest up to £80m to enhance corporate functions across nine government departments. It aims to transform shared services and streamline systems, making them more efficient, modern, and cost-effective, delivering better value for taxpayers.
The government has commissioned a review led by the government Chief Scientific Adviser, Professor Dame Angela McLean, and National Technology Adviser, Dr Dave Smith, to identify barriers to adopting transformative technologies. This review will focus on the high-growth sectors in the government’s Industrial Strategy, aiming to enhance and productivity and drive growth to boost the UK economy.
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