Source · Select Committees · Public Accounts Committee

Recommendation 15

15 Accepted

Government aims to improve clarity and justification for R&I funding allocation decisions.

Recommendation
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 easier to make decisions on R&I “when it is clear what the Government actually want at a high level.”32
Government Response Summary
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 specific priorities.
Government Response Accepted
HM Government Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 1.2 Research and innovation are central to delivering each of the government’s five missions. In June 2025, the Spending Review and the Industrial Strategy provided clear direction to UK Research and Innovation (UKRI) around its role in enabling the government’s Plan for Change. UKRI will increase the support it provides to the growth-driving sectors outlined in the Industrial Strategy and pivot its programmes and budgets towards research and innovation priorities set out in the Sector Plans. 1.3 As part of this, the £500 million R&D Missions Accelerator Programme, delivered by UKRI, will target research and innovation towards addressing priority problems facing the government’s five missions, bringing together partnerships between research and industry. The programme seeks to leverage a further £1.5 billion of private investment and generate innovation solutions that can be pulled through to adoption in the public and private sectors. 1.4 The Department for Science, Innovation and Technology (DSIT) will shortly publish new strategic objectives for UKRI, which set out the organisation’s role delivering government priorities. This is discussed further at recommendation 2. These new objectives will be aligned with the government’s three priorities for investment in R&D: protecting and growing curiosity driven research; addressing government priorities and tackling societal challenges; and supporting R&D intensive companies to start-up, scale up, and stay in the UK. This approach is intended to increase strategic clarity and transparency around investment and its expected outcomes, as part of the government’s plans to reform the R&D system over the longer term around a limited set of priorities.