Recommendations & Conclusions
30 items
2
Conclusion
41st Report - UK Research and Innovation
Accepted
UKRI does not have a set of clearly defined objectives against which to judge its performance and hold it accountable. To articulate the value of public investment in R&I, it is important to monitor progress and performance against specific targets and Key Performance Indicators (KPIs). UKRI lacks specific, measurable, achievable, …
Government response. The government agreed and committed to publishing UKRI's strategic objectives and key results, underpinned by measurable targets, by Autumn 2025.
HM Treasury
3
Conclusion
41st Report - UK Research and Innovation
Accepted
There is insufficient clarity about, and visibility of, where UKRI is investing its money. Knowing where UKRI invests its money is essential to good financial management, while also helping organisations in the private sector to guide their investment decisions. For example, it can be more attractive for investors, and more …
Government response. The government agreed, acknowledging existing data access but committed to launching a new online portal by Summer 2026, improving data coverage, and publishing detailed UKRI allocations for the next Spending Review period before the next financial year. UKRI will report …
HM Treasury
4
Conclusion
41st Report - UK Research and Innovation
Accepted
UKRI does not yet have the IT systems of a modern organisation. UKRI can classify its grants by theme, based on the award title and description and can produce one-off analyses of parts of its portfolio. For example, in 2024 it produced a review of its portfolio of spending on …
Government response. The government agreed and committed to providing the Committee with an update in February 2026 on the implementation progress of its wider organisational change programme, including systems and functionality, and plans for further modernisation.
HM Treasury
5
Conclusion
41st Report - UK Research and Innovation
Accepted
It is unclear how UKRI manages risk across its portfolio and what the different parts of its portfolio are meant to achieve. UKRI has repeatedly referenced the importance of its portfolio approach to funding research and innovation. However, the committee is not convinced that the components of UKRI’s portfolio and …
Government response. The government agreed and committed to incorporating recommendations into UKRI's biennial risk appetite statement review by February 2026, developing guidance for risk appetite types, providing training, establishing a community of practice, and reviewing peer reviewer instructions.
HM Treasury
6
Conclusion
41st Report - UK Research and Innovation
Accepted
DSIT and UKRI face severe challenges in helping UK research and innovation to scale up commercially against a backdrop of intense international competition and a tight fiscal environment. The government considers research and innovation and the diffusion of new technologies to be vital to the UK’s future and to achieving …
Government response. The government agreed and committed to publishing an assessment by Spring 2026, using various data sources to identify areas for scaling innovation. While specific evaluation dates for the Proof-of-Concept fund are pending, early insights will inform allocation decisions, and DSIT …
HM Treasury
1
Conclusion
41st Report - UK Research and Innovation
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (DSIT) and from UK Research and Innovation (UKRI) on public funding of research and innovation.1 We also took evidence from Sir David Grant CBE, author of the …
Government response. The government stated that UKRI will increase support for growth-driving sectors, pivot programmes towards strategic priorities, and deliver a £500 million R&D Missions Accelerator Programme. DSIT will also shortly publish new strategic objectives for UKRI, aligning with government priorities for …
HM Treasury
7
Recommendation
41st Report - UK Research and Innovation
Accepted
As the sponsoring department responsible for settings UKRI’s objectives, DSIT makes the main decisions on the shape of UKRI’s portfolio, including allocations to the research councils, using advice from UKRI.8 UKRI’s task is to advise on how best to turn these priorities into action, and then to 4 C&AG’s Report, …
Government response. The government agrees with the recommendation and states that research and innovation are central to delivering each of the government’s five missions. DSIT will shortly publish new strategic objectives for UKRI, which set out the organisation’s role delivering government priorities.
HM Treasury
8
Conclusion
41st Report - UK Research and Innovation
UKRI must also balance meeting the UK’s longer and shorter-term research and innovation needs when deciding where to allocate funding. It faces an inherent tension in allocating funding with government priorities in mind, while not stifling the innovation needed for future R&D.11 Professor Boyle felt that UKRI also has role …
HM Treasury
9
Conclusion
41st Report - UK Research and Innovation
DSIT told us that it asks UKRI to work closely with departments, such as the Department of Health and Social Care and the Department for Energy Security and Net Zero, ensure governmental R&I work is joined up.14 The NAO found 105 government policy papers across 13 ministerial departments in the …
HM Treasury
10
Recommendation
41st Report - UK Research and Innovation
Accepted
UKRI does not consolidate or rank the government policies and activities that it is expected to support, meaning that the government does not currently have an overall picture of what it is asking UKRI to do.17 We asked DSIT how confident it is there are clear lines of sight from …
Government response. The government accepts the recommendation and will publish new strategic objectives for UKRI by Autumn 2025 to clarify UKRI's role in delivering government priorities. This will increase strategic clarity and transparency around R&D investment and its expected outcomes.
HM Treasury
11
Recommendation
41st Report - UK Research and Innovation
Accepted
To be able to articulate the value of public investment in R&I, it is vital that UKRI can monitor progress and performance against specific targets and Key Performance Indicators (KPIs). In 2018, when UKRI was formed, DSIT set 10 strategic objectives for UKRI and published them in a framework document. …
Government response. The government accepted the recommendation, stating DSIT is developing strategic objectives for UKRI, underpinned by measurable key results, which will be published by Autumn 2025.
HM Treasury
12
Recommendation
41st Report - UK Research and Innovation
Accepted
We asked UKRI how it knows the organisation has been successful or not in the absence of measurable objectives. UKRI outlined how it uses an ‘annual balanced scorecard’ of indicators to track the health of the R&I system.24 The scorecard comprises over 100 metrics across four themes: its impact; stakeholders’ …
Government response. The government accepted the recommendation, stating DSIT is developing strategic objectives for UKRI, underpinned by measurable key results, which will be published by Autumn 2025, implicitly addressing the transparency of performance metrics.
HM Treasury
13
Conclusion
41st Report - UK Research and Innovation
Not Addressed
DSIT and UKRI advised us that private sector investment in UK R&I was £46.7 billion in 2024.27 We asked whether private investment in UK R&I has gone up or down in recent years. DSIT advised that it is going up, but that due to a correction to the ONS data …
Government response. The government states it is developing and will publish strategic objectives and key results for UKRI by Autumn 2025 to monitor its delivery against government priorities. However, this response does not address the committee's observation about the lack of long-term …
HM Treasury
14
Conclusion
41st Report - UK Research and Innovation
Accepted
We asked DSIT what it would consider the top three KPIs that it would encourage incoming UKRI leadership to track. DSIT recommended overall public and private spend on R&D, UK global rankings on the creation of ideas and, UK global rankings in scale-up growth and application of research.29 At a …
Government response. The government accepted the conclusion, stating DSIT is developing strategic objectives for UKRI, underpinned by measurable key results, which will be published by Autumn 2025 to provide clarity on what UKRI is investing in and its performance.
HM Treasury
15
Recommendation
41st Report - UK Research and Innovation
Accepted
The government recently set out its aim to more clearly define and justify the allocation of R&I funding between curiosity-driven basic research; targeted research aligned to government ambitions including economic growth; and investment to support innovative businesses including scale-up.31 DSIT told us it welcomes this added clarity, feeling it is …
Government response. The government accepts the recommendation and will publish new strategic objectives for UKRI by Autumn 2025, aligning with its three R&D investment priorities to increase strategic clarity and transparency. They also highlight the £500m R&D Missions Accelerator Programme to target …
HM Treasury
16
Recommendation
41st Report - UK Research and Innovation
Accepted
UKRI is working to address significant limitations in its data systems, which restrict its ability to efficiently manage its grant spending in a strategic way. To effectively manage R&I funding, it is vital to know what is being funded across a portfolio, and against important research objectives, so that UKRI …
Government response. The government accepts the recommendation, stating UKRI is developing a new online portal to replace Gateway to Research by Summer 2026, which will improve data accessibility and coverage for the UKRI portfolio and funds managed for other departments. UKRI will …
HM Treasury
17
Recommendation
41st Report - UK Research and Innovation
Accepted
DSIT highlighted work that it has done in recent years to be able to look at the whole range of R&D spending across government but acknowledged that there is a lot more work to do to bring together all the R&D data from across government and to be able to …
Government response. The government accepts the recommendation, confirming UKRI is developing a new online portal to replace Gateway to Research by Summer 2026, which aims to improve data accessibility and coverage across the UKRI portfolio and funds managed for other departments. UKRI …
HM Treasury
18
Recommendation
41st Report - UK Research and Innovation
Accepted
We asked whether the new systems that UKRI is developing could be adopted by other departments to provide insight across all government investment in research and innovation.39 UKRI noted that, while it invests a substantial amount of taxpayers money, this sum amounts to less than half of what government as …
Government response. The government accepts the recommendation, stating UKRI is developing a new online portal, replacing Gateway to Research by Summer 2026, which will improve data accessibility and coverage across the UKRI portfolio and funds managed for other departments. UKRI will report …
HM Treasury
19
Conclusion
41st Report - UK Research and Innovation
Accepted
UKRI is formed of seven research councils, Research England (which supports research and knowledge exchange at higher education institutions in England), and Innovate UK, the UK’s innovation agency.43 Since its establishment, UKRI has faced challenges unifying the separate data systems of its predecessor organisations, including poor and disconnected data.44 UKRI …
Government response. The government agreed with the Committee's conclusion, detailing UKRI's ongoing organisational change programmes to enhance IT systems, data quality, and grant administration, including a new Databank and improved data collection, with an update to the Committee due by February 2026.
HM Treasury
20
Conclusion
41st Report - UK Research and Innovation
Accepted
Despite developing modern IT systems being a priority for UKRI since 2019, the introduction of updated systems has been delayed.48 This delay, UKRI told us, was due to lengthy government procurement processes and “challenges of delivery in UKRI”.49 However, once fully functional, UKRI told us its new system should capture …
Government response. The government acknowledged the conclusion and affirmed UKRI's ongoing organisational change programmes to enhance IT systems, data quality, and grant administration, committing to provide an update on implementation progress by February 2026.
HM Treasury
21
Recommendation
41st Report - UK Research and Innovation
Accepted
As we have reported before, one of the most serious risks to all parts of Government and industry is large-scale-assaults on their cyber security defences and ensuring their resilience against such attacks. Outdated legacy systems, such as those at UKRI, increase the cyber risk to government.53 UKRI told us it …
Government response. The government accepts the recommendation, stating UKRI is overhauling its systems through organisational change programmes to enhance information security and has invested in data capabilities including a data warehouse. UKRI will provide an update on modernisation progress to the Committee …
HM Treasury
22
Conclusion
41st Report - UK Research and Innovation
Accepted
To effectively manage R&I funding, it is crucial to have good information on what is being funded across a portfolio. Professor Boyle outlined the importance of needing high-risk, high reward research but also the need to support “winners” and low-risk, high-reward research.55 DSIT told us it expected multiple projects in …
Government response. The government accepts the implied recommendation, stating it will incorporate NAO recommendations into UKRI's 2025 risk appetite statement review by February 2026. UKRI will also develop risk appetite guidance, provide training, establish a community of practice, review peer reviewer instructions, …
HM Treasury
23
Conclusion
41st Report - UK Research and Innovation
Accepted
UKRI’s total portfolio of funding comprises a wide range of investments, including R&I grants, strategic institutional funding to English Higher education providers and institutions, and UKRI says it balances risk across its portfolio by the type of funding mechanism.57 UKRI considers R&I grant funding to be of higher risk than …
Government response. The government accepts the implied recommendation, stating it will incorporate NAO recommendations into UKRI's 2025 risk appetite statement review by February 2026. UKRI will also develop risk appetite guidance, provide training, establish a community of practice, review peer reviewer instructions, …
HM Treasury
24
Recommendation
41st Report - UK Research and Innovation
Accepted
We asked UKRI if it could give us an example of a high-risk project it is supporting. UKRI gave us an example from past use of BBSRC funding where techniques were considered incredibly demanding at the time 55 Q 22 56 Q 58 57 C&AG’s Report, para 2.6 58 C&AG’s …
Government response. The government accepts the recommendation, committing to incorporating NAO recommendations into UKRI's 2025 risk appetite statement review by February 2026. UKRI will also develop guidance, provide training, establish a community of practice, review instructions for peer reviewers, and evaluate a …
HM Treasury
25
Conclusion
41st Report - UK Research and Innovation
Accepted
The government considers R&I and the diffusion of new technologies to be vital to the UK’s future and to achieving its mission to grow the UK economy.65 Achieving this growth will require UK companies to successfully scale up their commercial exploitation of R&I.66 Professor Boyle told us that while the …
Government response. The government agreed with the Committee's conclusion on the importance of scaling innovation, reiterating its commitment through the Industrial Strategy, the new Proof-of-Concept fund, and an integrated approach to provide the right policy environment for firms.
HM Treasury
26
Conclusion
41st Report - UK Research and Innovation
Accepted
We asked if there were specific fields in which the UK is strong scientifically but where we are less good as a country at scaling it up.70 In correspondence following the session, DSIT explained that the Government Office of Science runs a technology insights unit that produces the Science Power …
Government response. The government agreed with the conclusion, detailing how DSIT and UKRI draw on existing data sources (e.g., Science Power Index, Innovation Clusters Map) to identify areas for scaling innovation and leverage the Industrial Strategy's integrated approach.
HM Treasury
27
Conclusion
41st Report - UK Research and Innovation
In correspondence following the session, DSIT stated that UKRI’s investment in Quantum Hubs has generated 17 spinout companies to date, 14 of which are still active. Similarly, DSIT wrote that UKRI has invested over £700m in synthetic biology R&I since 2007, including £115m into the Synthetic Biology for Growth Programme …
HM Treasury
28
Conclusion
41st Report - UK Research and Innovation
Accepted
We asked what UKRI and DSIT are doing to address the systemic challenges to achieving economic growth by commercialising the results of R&I.74 DSIT told us that it is currently focusing on how public sector investors (including Innovate UK, the British Business Bank, the National Wealth Fund, and UK Export …
Government response. The government agreed with the Committee's conclusion, outlining ongoing efforts to support scaling innovation, including UKRI's new Proof-of-Concept fund, an integrated approach with various public finance institutions, and leveraging public procurement, with allocations to UKRI to be published by Spring …
HM Treasury
29
Conclusion
41st Report - UK Research and Innovation
DSIT stressed that specific skills are needed to turn research into commercial success.78 Professor Grant told us that UKRI plays a much bigger role than people realise in building the skills of people who move from research into industry.79 UKRI told us it has done a lot of work to …
HM Treasury
30
Conclusion
41st Report - UK Research and Innovation
Acknowledged
We asked whether our witnesses had concerns that some universities are running into funding difficulties, which could seriously impair research and innovation. Professor Boyle told us that there is an extremely difficult financial environment at present in the university sector due to a decline in income from international student fees, …
Government response. The government acknowledged the concerns about university funding difficulties, stating DSIT will consider the impact on financial sustainability when deciding UKRI allocations and uses analyses to understand the challenges universities face.
HM Treasury