The Department for Science, Innovation and Technology (DSIT) has announced a bold 10-year funding plan to shape how public sector research and development (R&D) money gets spent.
The goal here is clear: let departments target their budgets over a decade, channeling funds into specific programs, activities, and smaller research organizations. This strategy aims to stimulate both economic growth and scientific advancements through consistent long-term funding. R&D plays a crucial role in Labour’s vision for sustainable economic growth, forming a core part of the upcoming industrial strategy. The government acknowledges that meaningful R&D initiatives, especially those that foster collaboration with businesses and international partners, need financial stability to succeed. Public bodies must account for this funding commitment in their budgets.
DSIT coordinated with the Treasury and other groups to lay out principles for the 10-year funding approach. Transparency is key here, ensuring everyone knows how public bodies will choose specific initiatives for long-term support. The guidance suggests public agencies should limit the percentage of their R&D budgets allocated to these long-term funds. This keeps them flexible and ready to respond to immediate needs as they arise.
Departments will handle their selection processes according to the guidance, which outlines four key areas for funding. First up is infrastructure and core capabilities. This focuses on supporting efforts to develop and maintain vital national infrastructure, enabling more impactful usage that shorter funding cycles simply can’t accommodate.
Next, the plan aims to attract and retain talent. Longer-term funding will help build a pipeline of skilled researchers, scientists, and engineers—essential for Labour’s Plan for Change. The last two areas cover international collaboration and partnerships with businesses.
“We need stable funding for research and innovation—from computing and AI to health breakthroughs,” said science minister Patrick Vallance. He emphasized that this initiative fulfills their manifesto commitment to encourage long-term funding while maintaining enough flexibility for shorter-term projects. This approach aims to provide certainty for certain research organizations, unlocking essential business investments that will fuel growth at the heart of their Plan for Change.
In the 2024 Autumn Budget, the government aims to invest £20.4 billion in research and development for 2025-26. However, an earlier report from the National Audit Committee (NAO) highlighted challenges. UK Research and Innovation (UKRI), which is tasked with providing multi-year funding, struggles with a lack of cohesive direction from government departments. The NAO noted that 24 departments and public bodies have already published key research questions they face, pointing to the need for clearer coordination.