Home / Sources / National Audit Office / UK Research and Innovation’s management of the Industrial S…
Source · National Audit Office

UK Research and Innovation’s management of the Industrial Strategy Challenge Fund

This report examines whether the Industrial Strategy Challenge Fund is likely to deliver value for money.

Published: 5 Feb 2021 Recommendations: 4 Type: Value for Money NAO confirmed: 4 Department: Department for Business, Energy & Industrial Strategy
Dept: Department for Business, Energy & Industrial Strategy Topics: Business and industryCommercial and financial managementEconomic growthGrants and fundsMoney and taxScience and innovation nao.org.uk →

Recommendations

4 items
4 accepted 4 implemented

Recommendation 1

Addressee: Department for Science, Innovation and Technology · Source location: Page 13, paragraph 26, point a

UKRI, working with the Department and HM Treasury, should re-examine the arrangements for measuring the performance of the Fund, in particular whether the array of current objectives provide a coherent direction and have sufficient focus on the impacts to be delivered from the money spent;

Response position: Accepted

Delivery: Implemented · Q1 2022-23 · Confirmed by NAO

Recommendation 2

Addressee: Department for Science, Innovation and Technology · Source location: Page 13, paragraph 26, point b

UKRI, working with the departments, should streamline the current arrangements for selecting new challenges to help shorten the time taken to arrive at decisions. Lengthy approval timescales can have practical implications for applicants hoping for support, UKRI’s ability to manage its budget effectively, and ultimately the delivery of impacts. UKRI and the departments should assess whether the right staffing capacity is in place in UKRI at the times needed and whether the approval processes in the departments could be shortened without undermining the rigour of the exercise;

Response position: Accepted

Delivery: Implemented · Q4 2021-22 · Confirmed by NAO

Recommendation 3

Addressee: Department for Science, Innovation and Technology · Source location: Page 13, paragraph 26, point c

In line with the government’s ambition for R&D to support the wider ‘levelling up’ agenda, UKRI should examine the factors that may be driving the current geographical distribution of funding. This might include issues such as awareness of the Fund across the UK, and the intensity of involvement in the Fund across the industrial sectors known to be investing in R&D and innovation, for example, arising through the choice of challenge funds;

Response position: Accepted

Delivery: Implemented · Q4 2021-22 · Confirmed by NAO

Recommendation 4

Addressee: Department for Science, Innovation and Technology · Source location: Page 13, paragraph 26, point d

UKRI should review the impact of changes in its conditions for co-investment funding on the size of business applying for support through the Fund.

Response position: Accepted

Delivery: Implemented · Q4 2021-22 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.