The UK government recognises the importance of research and development (R&D) in driving economic growth and innovation. The recent Spending Review set out a public R&D budget of £86bn over the next five years. While far short of the ambitious target which
the CBI called for, this slight real-terms increase in the R&D budget in challenging fiscal conditions signals the government's commitment to prioritising innovation-driven growth. It is essential that this significant budget is now invested in well-designed programmes to maximise its impact on the UK’s long-term economic growth.
The Spending Review set out allocations for several key programmes and institutions including the R&D Missions Accelerator Programme, local innovation partnerships, and the Advanced Research and Invention Agency (ARIA). However, the majority of R&D institutions
and programmes will be allocated budgets through the ongoing allocations process.
The increasing costs of research, the breadth of research and innovation opportunities in the UK, and the requirement for funders to support the government’s strategic priorities, mean that DSIT, UKRI, and other government departments will face difficult choices within these allocations.
This brief paper sets out the CBI’s priorities for the 2025 R&D allocations. The CBI and our members recognise that the R&D budget funds an enormous range of valuable organisations, programmes and initiatives – from PhD studentships, to large-scale research infrastructure, to business innovation grants. This paper is not intended to provide comprehensive comments across this portfolio, but rather highlight a few principles and priorities for R&D to drive increased growth.
