The Chancellor should set a target of 5% annual real-term growth in private research and development (R&D) investment over the next three years in the Autumn Budget 2024, says the National Centre for Universities and Business (NCUB).
To reach this goal, the UK Government must introduce policies that encourage businesses to invest more in R&D, foster innovation and align the UK with global business R&D trends, it says.
Dr Joe Marshall, Chief Executive of NCUB, said:
“In the upcoming Budget, we are urging the Chancellor to set an ambitious target for private R&D investment. The Government should be aiming for at least 5% real-term growth per year over the next three years, aligning with the global average growth in business R&D investment. This increase could lead to an additional £2.7 billion in business R&D investment annually in the UK. To meet this target, the Government has an important role to play to implement new policies and initiatives that encourage and attract business investment in R&D. Recent NCUB analysis shows that public investment in research helps leverage private investment. Indeed, for every £1 spent by the Government on R&D, an additional £3.09 to £4.02 is then spent by businesses investing in UK R&D.
“Only by fostering an environment conducive to innovation and collaboration, and committing to ambitious targets, can the UK position itself as a leader in R&D, driving economic prosperity and societal advancement. We need to be rightfully ambitious to ensure that UK’s private R&D investment aligns with the scale of our economic growth ambitions. The Government has an opportunity on 30 October to provide the clarity and certainty needed to encourage the private sector to take a leading role in the UK’s economic future.”
