The UK government has pledged a transformative £86 billion to bolster science, research, and technology over the next four years, reaching £22.5 billion annually by 2029/30. The announcement, part of a broader “Plan for Change,” was made ahead of the 2025 Spending Review and represents a major leap toward establishing the UK as a global leader in innovation.

Key highlights:
• £86 billion to fund everything from new drug treatments and longer lasting batteries to new AI breakthroughs to generate billions for the UK economy and drive the UK government’s “Plan for Change”.
• includes up to £500 million for regions across the UK, with local leaders part of decision making.
• announcement comes ahead of the Spending Review, where the Chancellor will make clear that investing in Britain’s renewal will deliver change for working people and their communities.

Key Objectives
Fuel economic growth: Every £1 of R&D spending is expected to generate up to £7 in economic benefits, stimulate private investment, and support around 3 million jobs.
Boost regional innovation: A dedicated £500 million Local Innovation Partnerships Fund will empower local leaders to direct investment toward their region’s strengths.

The government’s regional focus acknowledges that innovation is strongest when aligned with local ecosystems with targeted investment across sectors such as:
• Liverpool will leverage its life-sciences hub to accelerate new drug development.
• South Wales – home to the UK’s largest semiconductor cluster, will receive funding to develop chips for mobile devices and electric vehicles.
• Northern Ireland stands to gain through enhanced defence technology capabilities.

Each of the seven Mayoral Strategic Authorities in England, including Greater Manchester, West Midlands, South Yorkshire, West Yorkshire, Liverpool City Region, Northeast, and Greater London will receive at least £30 million. Devolved governments in Scotland, Wales, and Northern Ireland, as well as other UK areas, may compete for additional funds.

Spotlight on Local Innovation Partnerships
This funding builds on successful pilots like Greater Manchester’s AI-powered diagnostic accelerator, which speeds up and reduces the cost of detecting liver, heart, and lung disease, and the West Midlands’ Moonbility platform, using AI to model transport disruption and assist passengers. The Local Innovation Partnerships Fund marks an enduring push toward democratising access to R&D.

Chancellor Rachel Reeves described the initiative as critical to “investing in Britain’s renewal to create jobs, protect our security against foreign threats, and make working families better off”. Science and Technology Secretary, Peter Kyle, emphasised that R&D underpins breakthroughs, from longer-living technologies to climate-fighting innovations, and aims to enhance quality of life throughout the UK.

Policy Alignment & Spending Review Context
The infusion is part of a larger Spending Review package: the Chancellor will unveil £113 billion in new capital investment in housing, transport, and energy, following her modifications to debt rules. These investments align with the government’s shift to empower regional spending via reforms to the Treasury’s “Green Book,” facilitating more strategic, place-based investment.

Universities UK welcomed the announcement. CEO Vivienne Stern praised the plan as “a smart investment” with the potential to spur long‑term growth nationwide:

“The UK has a real opportunity to sow the seeds of long-term growth… from Swansea to Aberdeen, from Barrow to Plymouth.”

Mayor Richard Parker of the West Midlands affirmed the plan would help regions “turn our potential into progress” by supporting clean energy, life sciences, AI, and manufacturing. Northeast Mayor Kim McGuinness said the investment would bolster established industries like automotive and green energy, while enabling growth in space and AI sectors.

Academic and think‑tank concerns highlight the need for an integrated, long-term strategy. Critics argue the UK must address skills development, enterprise diffusion, international recruitment, and commercialisation pathways to maximise returns.

UK in the Global R&D Landscape
With annual R&D spending to reach approximately £22.5 billion, up from present levels, the UK is narrowing the gap with global peers. The NIHR, France’s CNRS, Germany’s DFG, and the US’s NIH are all drawing international talent and investment. In contrast, this commitment gives the UK a competitive edge, reinforcing its position as a leading location for innovation. Broader impacts include:
1. Economic Growth & Jobs: Widespread benefits across healthcare, manufacturing, transport, energy, and digital sectors.
2. Improved UK Resilience: By decentralising innovation and supporting national security needs.
3. R&D Ecosystem Strengthening: Boosting universities, research councils, SMEs, and large-scale industry collaborations.
4. Commercial Translation: Sustained success depends on converting research into business ventures and products.
5. Inclusive Innovation: Gaining equitable access for underserved regions and diverse talent will be critical.

Looking Ahead
The £86 billion R&D funding represents a historic investment in UK science, technology, and regional empowerment. It promises to fuel job creation, advance innovation, and reinforce national resilience. But unlocking its full potential will require nurturing collaboration across government, academia, and industry, backed by efficient implementation and long-term strategic planning.

Success will hinge on:
• Effective regional partnerships.
• Stronger infrastructure and talent pipelines.
• Incentives for commercialisation.
• Inclusive access across the UK.

With Chancellor Reeves’ Spending Review due today (10th June 2025) and the “Green Book” reforms taking shape, the world will watch: this investment is more than a funding surge, it’s a bold declaration of the UK’s future in global science and innovation.