Government to boost research and innovation funding

Prime minister Theresa May has unveiled plans to support the science and technology industry with increased funding

The government plans invest £2 billion per year by 2020 for research and development to ensure British businesses remain ahead in scientific and technological discovery, prime minister Theresa May has told the CBI annual conference.

An Industrial Strategy Challenge Fund will be implemented to support priority technologies such as robotics, artificial intelligence, biotechnology, satellites and advanced materials manufacturing to ensure the UK turns strengths in research into a global industrial and commercial lead.  

To realise the full economic potential of these technologies, there will also be a review of the support for organisations undertaking research through the tax system, to ensure the global competitiveness of the UK as a home for scientists, innovators and tech investors.

May said: “It is not about propping up failing industries or picking winners, but creating the conditions where winners can emerge and grow.

“It is about backing those winners all the way, to encourage them to invest in the long-term future of Britain. And about delivering jobs and economic growth to every community and corner of the country.”

In response to the speech, Dr Colin Brown, director of engineering at the Institute of Mechanical Engineering, said:  “This is a chance for Government to outline how it will use ideas like the circular economy to help generate the home-grown skills needed for its industrial strategy.

“The circular economy can provide a foundation for economic development, regeneration of industrial heartlands and job security as well as creating collaborative communities and reducing our impact on air, land and water."

Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, said: “Manufacturers are willing to pick up the gauntlet which the prime minister has thrown down and contribute to driving up the UK’s productivity performance over the long-term. In response, we now need to see all government departments playing their part by getting behind such a strategy in a joined-up manner."

Research shows that each £1 spent on R&D tax credits generates between £1.53 and £2.35 of additional investment in the UK.