The UK is set to unlock £86 billion in transformative investment to accelerate science and technology growth as Prime Minister Rachel Reeves prepares to unveil a sweeping funding package in future spending reviews.
Called the crucial moment of the UK’s economic future, this investment covers the country’s fastest-growing sectors (high-tech, life sciences, advanced manufacturing, defense) and forms the backbone of a new modern industrial strategy.
This groundbreaking presentation shows a major shift in national priorities, solid at the heart of the government’s agenda for renewal, with science, research and innovation.
Commenting on the investment, Prime Minister Reeves said: “The UK is home to science and technology. Through planning change, it is to invest in renewals in the UK to create jobs, protect safety from foreign threats, and improve working families.”
Major investments in research and development
At the heart of the initiative is pledged to provide over £22.5 billion per year to research and development (R&D) by 2029/2030.
This long-term commitment is expected to create high-quality jobs and position the UK at the forefront of future technology while driving breakthroughs in AI, drug development and battery technology.
This investment highlights the strategic pivot on R&D as an engine of economic growth.
Research shows that for every pound invested in R&D, you get a profit of up to £7 in economic returns, often double your private investment.
Additionally, companies receiving early R&D support should see over 20% of work and revenue growth.
Strengthen the power of local innovation hubs
Reeves’ plans will diversify decision-making and provide management of local leaders through a new local innovation partnership fund.
This allows the region to tailor its research strategies to local strengths, such as Liverpool drug discovery, South Wales semiconductor design, or Northern Ireland’s defence innovation.
The government’s goals are clear. It’s about becoming an independent innovation hub that can attract investment and create sophisticated jobs across the UK.
The “innovation clusters” in these regions are built on successful pilot schemes such as innovation accelerators, and have already achieved results in Greater Manchester and the West Midlands.
Already ongoing transformation projects
Early successes include advanced diagnostic work on Manchester’s heart, liver and lung conditions, as well as the West Midlands Moonvality AI platform.
Another £5 million will be directed to linking two of the UK’s most dynamic regions, Manchester and Cambridge, in a new joint partnership.
The pilot will test new ways cities, universities and businesses can work together to attract further investment.
Science and Technology Secretary Peter Kyle added: “R&D is the foundation of breakthroughs that make our lives easier. From new drugs to being able to live longer and developing AI, to making train journeys easier, to alleviate the technologies needed to protect our planets from climate change.
“Incredibly ambitious research is underway in every corner of our country, from Liverpool to Inverness, Swansea and Belfast. That’s why the region leverages local expertise and skills, and all the benefits are at the heart of this new funding.”
The future of the UK
The announcement comes just before London Tech Week and highlights the UK’s ambition to stay at the cutting edge of science and technology.
With 3 million jobs already linked to R&D, the government’s new focus promises to unlock even more possibilities and lay the foundation for decades of growth.
This groundbreaking investment is located not only to lead the UK’s discoveries, but to ensure prosperity in all regions, making innovation a national mission.
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