Government launches £13.9bn of R&D funding to boost jobs and growth

As part of its Plan for Change, the Government has announced an additional £13.9bn in research and development (R&D) funding.

The Department for Science, Innovation and Technology (DSIT) has set out how it will allocate the £13.9bn in funding in the next year – investing in areas such as life sciences, green energy, engineering and beyond.

UK Research and Innovation (UKRI) will receive £8.8bn over the next year.

Public investment in R&D is also central to progress that grows the economy through new jobs and commercial opportunities.

Businesses that received their first R&D grant funding also saw jobs and turnover go up by over 20% in the following six years.

Science and Technology Secretary, Peter Kyle, said: “Our £13.9bn investment in R&D is ultimately an investment in the future of the UK.

“R&D is essential to fulfilling this government’s Plan for Change – whether in improving lives across the UK and beyond through new life-saving drugs, helping us build a cleaner, greener future or in exploring beyond our planet to unlock new discoveries that keep us healthy, safe and prosperous and much more besides.

“It is also central to creating highly paid jobs and opportunities to set up new businesses across the UK, which will drive the economic growth that is key to supporting our public services and enhancing our daily lives.”

The Government is also investing nearly £670m in space, through the UK Space Agency to help develop the space industry in the UK – employing 50,000 people in the UK – and ensure British companies like Airbus are involved in exploration beyond Earth.

Professor Dame Ottoline Leyser, CEO at UKRI, said: “Research and innovation play a crucial role in driving sustainable economic growth, creating jobs and improving public services for people across the UK. 

“This allocation safeguards the capability of the UK’s world class research and innovation ecosystem and enables investment to support the Government’s five missions. 

“UKRI will use its unique position in the research and innovation system to make smart and strategic investment choices, delivering the best outcomes now and in the future, and making the most effective use of public money.”