UK science produces enormous value for our society. The UK led the world in developing an effective COVID-19 vaccine, building on a strong base in biological sciences that was cultivated over decades. It is only through decades of research that we develop the medicines we take, the vehicles we travel in, or the internet and AI capabilities that are revolutionising the ways we live.
The science and technology sectors have strong growth potential. By investing in research, from university labs to routes to market, we can lead the way as a nation in turning early-stage discovery science into life-changing companies and products. The science and technology sector currently employs just under 3 million people, with one of the fastest employment growth rates in the past decade*. Scientific development underpins advances across our economy and is essential to delivering the government’s Plan for Change and five missions, from the development of solar cells for green energy to analytics and forensic imaging for crime prevention.
This submission sets out considerations for the UK Government at the Autumn Budget in three areas driving economic growth:
- Protecting and growing the UK’s R&D capabilities in the face of financial challenges;
- Building on our existing strengths to unlock the transformative potential of AI for science and research; and
- Urgently modernising maths, data and science education in schools to supply skills for the Modern Industrial Strategy.
Executive summary
- Science and innovation are central to UK prosperity: From vaccine development to artificial intelligence (AI) breakthroughs, long-term investment in research underpins economic growth, public health and national resilience.
- Protecting R&D investment is vital: The Government’s £22.6 billion R&D commitment by 2029/30 is welcome but must be protected and balanced across both basic and applied research to maintain the UK’s global scientific leadership.
- University funding challenges put research capabilities at risk: Financial pressures on higher education threaten the sustainability of UK R&D. The Royal Society welcomes the Government’s commitment to fund maintenance grants to improve access to university for students from disadvantaged backgrounds. However, the mechanism of the proposed levy on international students would worsen these financial challenges and have wider economic implications.
- Private sector investment in R&D is in decline: UK business R&D fell 9% YoY in 2023. Long-term funding certainty and international collaboration, including in the next European research programme (FP10), are essential to attract and to retain global investment. The Government must also urgently address high upfront visa costs, and particularly the International Health Surcharge, which are a barrier to scientific researchers coming to the UK.
- AI offers transformative potential for science: The UK must invest in AI infrastructure, skills and open science to unlock AI’s benefits for research and innovation.
Education reform is urgent: To meet future skills needs, the UK must modernise maths, data and science education, reduce inequalities, and support teacher recruitment and retention.
* Research and Development Expenditure, Office for National Statistics, 2024