Has UK Government’s R&D investment become a shifting target?

The Chancellor’s Autumn Budget Statement 2021 slipped the deadline for £22 billion of investment in Research and Development by 2024/25, to £22 billion by 2026-27.

Westminster - where R & D tax credit legislation is made

But the flip side is that the government said it would increase public R&D investment to record levels of £20 billion by 2024-25, an increase of almost 25%.

Delving into the detail, here is a summary of key R&D investment announcements:

  • For the first time, the government budget earmarks funding for the country’s participation in European Union research programmes.
  • BEIS’s funding for R&D is increasing to £14.2bn per annum by 2024-25, an increase of almost £3 billion compared to 2021-22 – to deliver the government’s Innovation Strategy.
  • Core funding for the UK’s world-leading universities and research institutions is to go up by £1.1 billion per year by 2024-25 compared to 2021-22.
  • Core Innovate UK programmes will be increasing to around £1 billion per year by 2024-25. Government expects this to drive high-tech innovation to leverage in private investment. Two Innovate UK funding programs that recently opened include:

NATEP helping SMEs innovate in aerospace – Autumn 2021
UK registered businesses can apply for a share of up to £2.5 million to carry out industry-led civil aerospace collaborative R&D projects. This funding is from the ATI Programme. Closes: 12 January 2022.

Made Smarter Innovation: Sustainable Smart Factory
UK registered businesses and organisations can apply for a share of up to £20m for digital innovation projects that will improve the resource efficiency and energy efficiency of manufacturing processes in factories. Closes:26 January 2022.

There were also changes proposed to the UK R&D tax credit scheme: R&D scheme changes in the Autumn Budget 2021.

Blog author: Linda Eziquiel

#funding #innovation #governmentgrants

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