R&D is vital to achieving the Government’s economic ambitions, say sector leaders

17 October 2024

The Russell Group, the Campaign for Science and Engineering (CaSE) and other leading organisations in the R&D sector have written to the Chancellor to back R&D in order to achieve government ambitions for economic and social growth.

As the Budget approaches, the organisations have urged Rachel Reeves to consider the vital role R&D will play in the Government’s long-term plans to grow the economy and increase jobs and productivity.

Recognising that public spending is under pressure, there is a risk that short-term thinking now could damage the UK’s capacity for long-term growth and ambitions around its Industrial Strategy. Research and innovation consistently provides high returns on investment, with every £1 invested in research at Russell Group universities generating over £8.50 for the UK economy.

Dr Tim Bradshaw, CEO of the Russell Group said: “The upcoming Budget comes at a crucial time as the government seeks to lay the groundwork for robust economic growth. Our sector has consistently proved how research and innovation delivers high rates of return, economically and socially, contributing to job creation, regional investment and breakthroughs that improve public services.

"We know the tough fiscal environment we’re operating in. But to achieve long-term growth – and build confidence in the UK as an attractive investment prospect – we urgently need stable policies and sustained R&D investment. Otherwise, we risk cutting off the research and innovation pipeline that contributes so much to the economy, services and citizens across the UK."

Alicia Greated, Executive Director of CaSE, said: "It’s clear that the Government has ambitious plans for the economy through its missions and Industrial Strategy, and R&D can play a big part in helping achieve those goals.

"We recognise that finances are stretched, and the Government must make some difficult decisions around where money is directed.

"However, any cut in investment now would significantly damage the R&D sector, making it impossible to help in boosting economic growth and productivity.

"Investing in R&D would create significant opportunities for us to support the Government in achieving its ambitions for the future."

The joint letter follows the Russell Group's own submission to the Chancellor last month, in which the group highlighted the benefits of investing in university-led R&D, and called for continued support for university-business collaboration in order to deliver the Industrial Strategy successfully.

Read the joint sector letter in full below.

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