Research and development fund to get record boost

The UK is to see its biggest ever increase in research and development investment and a new fund to transform transport connections within city regions across the country.

As part of the Industrial Strategy’s aim to improve productivity and create better and higher-paying jobs across the UK, the government will: work with industry to boost spending on research and development to 2.4 per cent of GDP by 2027, which could increase public and private research and development investment by as much as £80 billion over the next 10 years; and launch a £1.7 billion Transforming Cities Fund that will improve transport links and promote local growth within city regions, placing cities at the heart of our industrial strategy - including £250 million for better transport in the West Midlands.

This investment will see public research and development spending increase as a share of GDP for each of the next five years and bring investment to levels last seen in the 1980s. It builds on the commitment made last year to raise research and development spending from £9 billion in 2015/16 to £12 billion in 2020/21.

The Transforming Cities Fund will address weaknesses in city transport systems in order to raise productivity and spread prosperity. It will fund new local transport links, and will help make sure people across the country have better options to combine different modes of transport - supporting projects which will improve connectivity, reduce congestion and introduce new mobility services and technology.

Theresa May, Prime Minister, said: “One of my first actions as Prime Minister was to begin the development of a modern industrial strategy that will help businesses to create high-quality, well paid jobs right across the country.

“This is a new long-term approach to shaping a stronger and fairer economy for decades to come. It helps young people to develop the skills they need to take up the high-paid, high-skilled jobs of the future.

“Our Industrial Strategy will propel Britain to global leadership of the industries of the future, seizing the big opportunities of our time – from Artificial Intelligence and Big Data to clean energy and self-driving vehicles.”

Greg Clark, Business Secretary, said: “Through our Industrial Strategy we are committed to building a knowledge and innovation-led economy and this increase in R&D investment, to 2.4 per cent of GDP, is a landmark moment for the country.

“The UK is a world leader in science and innovation. By delivering this significant increase as part of our Industrial Strategy, we are building on our strengths and working with business to ensure that UK scientists and researchers continue to push the boundaries of innovation.

“We want the UK to attract, and create, the best and brightest talents, from Nobel Prize winners to ambitious graduate students, and this game-changing investment will ensure we are the home of the industries of the future and high-quality, good jobs.”

Chris Grayling, the Secretary of State for Transport, said: “Investment in transport is crucial to a strong and resilient economy. The Transforming Cities Fund will drive productivity and growth in cities where this is most needed, connecting communities and making it quicker and easier for people to get around.

“We have already seen the impact of better integrated transport links for both passengers and the local economy in cities like Nottingham and Manchester. This new fund will enable more English cities to reap these benefits, helping to deliver the opportunities and ambition of the Industrial Strategy across the country, as well as driving forward the Northern Powerhouse and Midlands Engine.”