Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Review complex net zero innovation funding arrangements for suitability ahead of the next Spending Review.
Conclusion
The Government is dependent on businesses delivering successful innovation to reach net zero, but too often it is difficult for businesses to know what support is available and how to access it. The Government is providing £4.2 billion of support for net zero research and innovation to 2025 through 115 funding programmes across eight government departments. The funding arrangements are complex because of the number of institutions and different geographies involved. DSIT tells us that it has no regrets about the large number of funding programmes, preferring to focus on trying to make them accessible and understandable for those businesses and other bodies seeking support. Innovate UK has recently launched the latest version of its Innovation Hub, which we are told will serve as a “front door” for helping businesses understand what support might be available. But it is too early to assess whether this Innovation Hub has made it easier for businesses to find government support for net zero research and innovation. Recommendation 2: Ahead of the next Spending Review, the Treasury, working with DESNZ and DSIT, should take the opportunity to review whether the current complex funding arrangements, which largely pre-date the development of the Innovation Framework, are best suited to supporting the fast-paced innovation needed to deliver many aspects of net zero. 6 Support for innovation to deliver net zero
Government Response Summary
The government agrees and states the Net Zero Innovation Board will review the current net zero R&I portfolio to assess progress and emerging challenges, informing future funding allocation decisions.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. will likely continue to be required as we determine the pathways towards net zero that are most effective, sustainable and represent the best value for money. The government recognises that the current funding landscape can be complex for businesses to navigate and has taken steps to improve accessibility and understanding of innovation funding support. This includes publishing the Net Zero Research and Innovation Framework Delivery Plan that details the allocation of £4.2 billion of spending and the resulting programmes being supported over the current Spending Review period, aligned to the priorities in the Net Zero Research and Innovation Framework. Innovate UK has also launched an Innovation Hub which aims to help businesses find public funding and support for innovation in one place. The Net Zero Innovation Board, chaired by the Government Chief Scientific Advisor, will review the current net zero R&I portfolio and consider evidence to assess progress and emerging R&I challenges for support. This will inform future allocation decisions, recognising the fast-paced nature of innovation needed to deliver net zero.