Government’s R&D commitment a positive signal – but greater ambition needed
The government’s £86bn research and development (R&D) budget, set over the next four years, is a welcome sign of its recognition of research and innovation as central to driving long-term economic growth. However, to secure the UK’s global competitiveness and unlock significantly greater private investment, bolder ambition is needed, says the National Centre for Universities and Business (NCUB).
Dr Joe Marshall, chief executive of NCUB said: “We welcome the government’s ongoing recognition that research and innovation are at the heart of sustainable economic growth. The headline commitment to an £86bn R&D budget over four years is critical. Our analysis shows that every £1 invested in research leverages an additional £4 from business in the long term — generating profound economic, social, and cultural benefits for the UK.
“The Spending Review shapes not only the scale of funding for research, innovation, and skills but also its strategic direction. We applaud the pledge to extend R&D impact across the whole UK — notably through the new Local Innovation Partnerships Fund in England and reforms following the Green Book Review. The guidance for developing Local Growth Plans in England rightly references the critical importance of involving local businesses, higher education providers and bodies such as UKRI.”
“The allocation of the £86bn research budget reveals important priorities. The substantial increase in defence-related R&D spending — rising from £1.7bn in 2025/26 to £2.4bn in 2028/29 — signals a shift in the research landscape that will have significant implications for the kinds of projects funded.”
“While the commitment to R&D funding is welcome, it is vital that key risks within the research and innovation system are addressed. UK universities play an indispensable and multifaceted role but continue to face severe funding pressures. The chancellor’s acknowledgement that our universities are a national asset was encouraging, yet proper, sustained investment is essential to enable universities to drive UK innovation and progress forward.”