Rachel Reeves is under pressure to ramp up government spending on research and development (R&D) to £30 billion by the end of the decade, as business leaders warn that the UK risks falling behind global innovation powerhouses.
The Confederation of British Industry (CBI) is calling on the chancellor to set an “ambitious and world-leading goal” of increasing R&D spending to 3.4% of GDP by 2030—equivalent to an additional £10 billion in funding. The business lobby group argues that such an investment would help the UK compete with high-innovation economies such as the United States and send a strong signal to both domestic and foreign investors.
In its submission to the government ahead of the upcoming spending review, the CBI stressed that boosting R&D expenditure would “crowd in” private sector investment, with estimates suggesting that every £1 of public spending could attract up to £5 of private funding.
The UK’s total government R&D spending reached £15.5 billion in 2022 and is expected to rise to £20 billion for 2023 when new data is released next month. Much of this funding is allocated through UK Research and Innovation (UKRI) and its seven research councils.
However, despite these increases, the UK remains behind leading economies such as the US, which invests hundreds of billions of dollars annually in AI, technology, and scientific research. The CBI argues that setting a clear target of 3.4% of GDP would help push Britain into the top three R&D spenders in the G7, strengthening its position in the global economy.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
