Businesses Urge Treasury to Prioritise Stability in Research Funding Ahead of Budget

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A group of businesses has submitted a letter to the Treasury emphasising the need for stability in research and development (R&D) funding.

As the Chancellor prepares to deliver her upcoming Budget, the letter calls for a long-term approach to investing in R&D, highlighting its critical role in driving economic growth and tackling major societal challenges.

Sam Laidlaw, Chair of the National Centre for Universities and Business said:

“Businesses are joining together, urging the Treasury to prioritise stable research funding in the upcoming Budget. They are emphasising that R&D is a long-term investment that is simply essential for economic growth and addressing major challenges. Abrupt funding cuts will have lasting negative effects on the UK's research and innovation system, which is crucial for future competitiveness, clean energy goals, healthcare advancements, and national security. To secure these benefits, businesses are together calling for sustained public investment to support a collaborative, advanced, and resilient R&D ecosystem.”

The letter reads:

Stability for the research budget must start now

“R&D is a long-term investment, made by businesses and by governments. This joint investment is essential to share risk and reward. These rewards will take time to realise, as fundamental research takes time to pull through into market-beating and market-changing innovations. But the patient investment is worth it when those innovations determine the leading economies of the future, the processes that drive a step change in productivity, and the discoveries that change and save lives.

“The longevity of the investment in research means that sudden, drastic drops in funding, even if temporary, have a significant and sustained scarring effect. This is why patient investment in research in the UK must be sustained by both the public and private sector. As the Chancellor prepares to deliver her budget, we appreciate that difficult decisions will need to be taken for the year ahead. There is much that can be done to strengthen the UK’s research and innovation system, backed by an ambitious and experienced Minister in Sir Patrick Vallance. However, over the next year the emphasis must be on maintaining the sustainable foundations of the system.

“The UK has the most vibrant research and innovation system outside of the US. Sustaining this critical national asset is essential for delivering the Government’s principal mission of economic growth, but also its plans to become a clean energy superpower, build the NHS for the future, make the UK safer, and create opportunity across all parts of the country.

“Advancements in research and technology are vast, transformative and rapid. They have the opportunity to boost our competitiveness and tackle the greatest challenges facing the UK today. However, to harness these opportunities the UK needs a collaborative, advanced and dynamic skills, research and innovation system, which consistent and stable public funding helps to underpin.”