CBI calls on government to prioritise R&D spend

CBI wants government to prioritise innovation and science funding ahead of the comprehensive spending review

The CBI is pressing government to prioritise innovation and science funding ahead of next month’s comprehensive spending review (CSR).

The call comes after new research showed that the UK Government spends just 0.49% of GDP on R&D – the lowest among the G8 and lower than many other countries. The group wants government to spend more than 6 times what it currently allocates to 3% of annual growth, as well as introducing a dedicated and long-term industrial strategy.

John Cridland, CBI director-general said research carried out by the organisation shows that innovation investment “has never been more important”.

“While our economy is doing well, we must not be complacent, as we cannot afford to rest on our laurels while our peers pace ahead.

“Instead we need to build on our research excellence by fuelling the UK’s innovation ecosystem with investment, fresh ideas and skills.”

The CBI believes that the government could do more by offering loans and equity funding alongside the existing programmes that are managed by Innovate UK. It also wants government to set out a coherent framework to make sure innovation boosts the economy to produce more “in the long term”

“With the UK’s research and development spending the lowest among the G8, we are falling ever further behind our international competitors and must take action so that we lead from the front,” Cridland said.  

As well as the call to prioritise innovation and science funding, the group is also asking the government to deliver a package on business rates reform that makes the regime, simpler, fairer and more competitive; fix the funding ladder for medium-sized businesses to ensure they can grow and contribute more to the economy; ring-fence revenue from the apprenticeships levy and introduce an independent ‘Levy Board’ to set the rate based on sound economic evidence; avoid further restrictions on skilled migration, which would harm the UK’s ability to attract investment and compete globally; and continue cross-government efforts to promote exports.