Rachel Reeves describes science sector as “crucial national asset”

The budget delivered by Chancellor Rachel Reeves has committed to protecting funding for research and innovation, describing the UK science sector as a “crucial national asset”.

Stressing that her government is determined to drive growth in the UK economy, Reeves said: “To drive innovation, we are protecting record funding for UK research and development, to harness the full potential of the UK science base.”

The budget red book, published following the chancellor’s speech in the House of Commons, says: “The UK’s science base is a crucial national asset. To fully harness its potential and foster a dynamic investment economy, the budget protects record levels of government R&D investment with £20.4bn allocated in 2025-26. This includes at least £6.1bn of support for core research.

“The government’s R&D investment also fully funds Horizon association, meaning that UK researchers and businesses can participate confidently in the world’s largest programme of research cooperation, worth more than £80bn.”

Elsewhere in the budget, Reeves committed said that the NHS will receive an extra £22.6bn for day-to-day. There will also be a £3.1bn increase in the capital budget, which she called the “largest real-terms growth in day-to-day NHS spending outside of Covid since 2010”.

Reeves also confirmed nearly £1bn for the aerospace sector, over £2bn for the automotive sector and up to £520m for a new national Life Sciences Innovative Manufacturing Fund.

Ottoline Leyser, UKRI’s chief executive, said: “We welcome the government’s continued commitment to research and innovation in today’s budget, recognising their crucial role in driving sustainable economic growth, creating jobs and improving public services for people across the UK.

“We appreciate the chancellor’s prioritisation of research and innovation, given the difficult choices to be made on public expenditure. We will work closely with the secretary of state, science minister, across government and with our research and innovation partners to maximise the impact of our investments and create a strong platform for an ambitious programme of research and innovation in the multi-year spending review next spring.”

Chi Onwurah, the Labour MP who chairs the Commons Science, Innovation and Technology Committee, said: “It’s vital that UK R&D gets long-term funding to keep up the momentum and level of expertise needed to drive our future prosperity. I welcome the commitment to protect core research funding, as well as the specific investments planned for R&D in high-tech industries like aerospace, automotive and clean energy.

“The committee looks forward to scrutinising the budget in detail.”