The New Labour Government’s First Budget Offered Glimmers of Hope for Science and Tech – But What’s Next?
Britain’s economy, as measured by GDP per capita, is currently about the same size as it was on the eve of the financial crisis. That means we’ve seen over a decade and a half of stagnation. In contrast, the US has seen its GDP per capita increase around 40% in that same period.
In light of this and increasing geopolitical competition, successive UK administrations have started to more explicitly champion science and technology as a way to improve prosperity and make Britain more competitive.
We’ve seen it in the establishment of the Department for Science, Innovation and Technology (DSIT) and the target for Britain to be a ‘Science Superpower’ by 2030. We’ve also seen the creation of the Advanced Research and Invention Agency (ARIA), the Integrated Review in 2021, and the Integrated Review Refresh and the Science and Technology Framework in 2023.
But the UK’s science and technology base needs to be properly supported so that it grows.
The Chancellor, Rachel Reeves, acknowledged this in the new Labour government’s first Budget. She set out her intention to ‘drive innovation by protecting funding for R&D and harnessing the full potential of the science base’.
So, what exactly did the Budget do for science and technology, and how can this drive economic growth that will ultimately raise living standards for all?
The Budget committed to protecting overall R&D spending, and to provide stability for R&D activities through decade-long funding cycles – both announcements which should be welcomed. It was particularly heartening to see overlaps between these and recommendations I made earlier this year in a report on science and technology for the Council on Geostrategy, a non-partisan Westminster-based think tank.
That report, for the Caudwell Strong Britain project, was based on a survey of scientists, entrepreneurs and policy experts about the barriers they faced in the UK’s science and technology ecosystem.
Sir Keir Starmer and Rachel Reeves were handed copies of this report before the General Election, and it’s encouraging to see they are working to address concerns faced by those working at the cutting edge of science and technology.
But they will see from that report that there is more to be done.
For instance, the report also highlighted that Britain’s current visa system is a barrier to attracting top international talent, and risks making the UK a less competitive environment – something the Budget left unaddressed.
The UK also needs to do more to ensure its Industrial Strategy, its National Wealth Fund, Skills England and other bodies – such as the National Infrastructure Commission – work together towards a coherent, optimistic and strategic vision for the UK based on national renewal and prosperity.
In order to do this, the government also needs to expand its foresight capacity and capabilities, so the UK has a better understanding of its performance internationally, lessons that can be learnt, and how the international landscape is evolving.
Without this, the government’s plans risk appearing piecemeal, and may not add up to more than the sum of its parts.
If you enjoyed this piece, follow the link here to read Dr Mann Virdee previous piece on how the Government can fix the UK’s science and tech industry.
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