Government announces £86 Billion for R&D until 2029/30
The UK’s £86 billion R&D funding plan is a major step for regional innovation and growth. In this blog, techUK shares its reaction and what needs to happen next to turn ambition into impact.
On 9 June, the government announced that the Spending Review will earmark £86 billion of spending until 2029/30 to support research and innovation across the UK. The full press release can be found on the Treasury website.
The government have outlined that this funding will go towards the key growth sectors outlined in the Industrial Strategy green paper back in October 2024. These include life sciences, advanced manufacturing and digital and technology.
As part of this funding, there will be money for regions across the UK through a Local Innovation Partnerships Fund, which aims to help local government develop ‘innovation clusters’ in the areas. The funding aims to build on the Innovation Accelerator pilot scheme and the strengths each part of the UK already possesses, including advanced semiconductors in South Wales and life sciences in Liverpool.
Dedicated awards of at least £30 million will be given to all of the Mayoral Strategic Authority in England: Greater Manchester, West Midlands, South Yorkshire, West Yorkshire, Liverpool City Region, the North East, and London. Scotland, Wales and Northern Ireland will also get funding depending on negotiations with devolved government.
Outside of this, the Local Innovation Partnerships Fund will also offer a funding competition to the rest of the UK to acquire support for R&D in their areas. There is also a £5 million investment planned to encourage partnership between Manchester and Cambridge to attract investment and link their hubs.
techUK’s view
techUK welcomes the government’s commitment to maintaining the R&D budget and increasing it to £22.5 billion a year in 2029/2030. This is a positive step towards ensuring the UK’s R&D ecosystem continues to grow and that a total UK spend on R&D of 3% of GDP is still possible.
techUK is also pleased to see the government have followed our recommendation in our Industrial Strategy submission, which encouraged government action to build on the pre-existing strengths of each region and area to prevent duplication of efforts across the UK. Similarly, techUK is also glad to see the government have initially set up each of the Mayoral Strategic Authorities to receive a basic level of funding, which means they can spend less time competing amongst themselves and more time finding ways to support cutting-edge R&D in their areas. This potential spirit of co-operation is well-exemplified by the partnership of Manchester and Cambridge, two areas seeking to help one another rather than compete, and techUK is ready to facilitate more of these partnerships and get authorities working more with one another.
techUK welcome the government’s announcement and commitments but awaits the details of how these plans will come to fruition. We would like to see further detail on the following:
Firstly, while these are good intentions, there is now a need to deliver on these pledges through concerted work between central and local government to outline the details of delivery. This delivery plan will also need to be supported by the rest of the measures in the Spending Review and by the government’s upcoming industrial and infrastructure strategies at a central level, as well as the local growth plans created by local government. If this funding does not pull in the same direction as these plans, there is a risk of policy incoherence that will harm growth.
Secondly, there is a lack of detail on how money will be allocated. For example, the government announcement says ‘at least’ £30 million will be distributed to the mayoralties. Does this mean each could receive more above this baseline and, if so, how? There is no clear governance structure or process for distributing the additional funds, and there is a danger mayoralties will, once again, be forced to compete for funding despite the benefits of co-operation.
Linked to this, those parts of the UK not part of the original guaranteed funding settlement (especially those areas without a mayor) are at risk of being left behind and being forced to compete for the leftovers in the pot, despite the importance of cutting-edge research to the economies of areas such as Oxford and Bristol.
Setting out these details, as well as the wider growth proposals in the Spending Review, Industrial Strategies, local growth plans and Infrastructure Strategy, is essential getting the UK to a total spend of 3% of GDP on R&D and matching the UK’s competitor countries around the world.
Our yearly Local Digital Index is a tool demonstrating the role, and provision of the tech economy across the UK and outlines how tech can continue to bear the torch of regional growth. You can find the 2024 Local Digital Index on its landing page, and the 2025 Index will be launched in the second half of the year.
Commenting on the announcement, Julian David OBE, CEO of techUK, said:
The UK boasts a strong and robust R&D
ecosystem, and today's announcement
marks a positive step toward ensuring its
continued growth. techUK have long
called for a more ambitious target for R&D
spending by 2030. This move reaffirms
the government's commitment to
supporting cutting-edge innovation -
from life sciences to national security -
while helping to drive economic growth
and unlock opportunities across every
corner of the UK. We look forward to
seeing delivery on this, alongside a
pro-business Industrial Strategy and
digital and technology sector plan
that ensures cutting-edge research
can be commercialised in the UK
and form the next generation
of UK unicorns.
Archie Breare
Policy Manager - Skills & Digital Economy, techUK
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the Local and General Election and working for the Casimir Pulaski Foundation. As well as working for multiple charities on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). Tess obtained her Bachelors of Arts in Politics and International Relations from University of Nottingham.
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Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
As Head of Public Affairs, Alice supports techUK’s strategic engagement with Westminster, Whitehall and beyond. She regularly works to engage with ministers, members of the UK’s parliaments and senior civil servants on techUK’s work advocating for the role of technology in the UK’s economy as well as wider society.
Alice joined techUK in 2022. She has experience working at both a political monitoring company, leading on the tech, media and telecoms portfolio there, and also as an account manager in a Westminster-based public affairs agency. She has a degree from the University of Sheffield in Politics and Philosophy.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Samiah Anderson is the Head of Digital Regulation at techUK.
With over six years of Government Affairs expertise, Samiah has built a solid reputation as a tech policy specialist, engaging regularly with UK Government Ministers, senior civil servants and UK Parliamentarians.
Before joining techUK, Samiah led several public affairs functions for international tech firms and coalitions at Burson Global (formerly Hill & Knowlton), delivering CEO-level strategic counsel on political, legislative, and regulatory issues in the UK, EU, US, China, India, and Japan. She is adept at mobilising multinational companies and industry associations, focusing on cross-cutting digital regulatory issues such as competition, artificial intelligence, and more.
She holds a BA (Hons) in Politics, Philosophy, and Economics from the University of London, where she founded the New School Economics Society, the Goldsmiths University chapter of Rethinking Economics.
Audre joined techUK in July 2023 as a Policy Manager for Data. Previously, she was a Policy Advisor in the Civil Service, where she worked on the Digital Markets, Competition and Consumers Bill at the Department for Science, Innovation and Technology, and at HM Treasury on designing COVID-19 support schemes and delivering the Financial Services and Markets Bill. Before that, Audre worked at a public relations consultancy, advising public and private sector clients on their communications, public relations, and government affairs strategy.
Prior to this, Audre completed an MSc in Public Policy at the Korea Development Institute and a Bachelor's in International Relations and History from SOAS, University of London. Outside of work, she enjoys spending time outdoors, learning about new cultures through travel and food, and going on adventures.
Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Dani joined techUK in February 2025 as a Policy Manager in the Digital Regulation team.
Prior to this, Dani worked in political monitoring where she was a consultant for Digital, Culture, Media and Sport. In this role, she developed a strong understanding of parliamentary procedure, closely following all of the major developments in the tech centre and working with several key stakeholders and regulators.
She has an undergraduate degree in History from the University of Bristol and an MPhil in Modern European History from the University of Cambridge.
Outside of tech, Dani has a strong interest in addiction policy, particularly towards drugs, having written her dissertation on the topic as well as several subsequent research projects. In her spare time, she enjoys cooking and following all things motoring, whether that be F1, MotoGP or Formula E.
Oliver is a Junior Policy Manager at techUK, working across Public Affairs and Digital Regulation policy. He supports the organisation’s engagement with government and parliament, contributes to shaping techUK’s regulatory agenda, and plays a key role in coordinating political outreach, policy projects, and flagship events.
He joined techUK in November 2023 as a Team Assistant to the Policy and Public Affairs team, before stepping into his current role. He has been closely involved in efforts to ensure the tech sector’s voice is heard in the policymaking process.
Oliver holds a Master’s in Policy Research from the University of Bristol and a BSc in Policy from Swansea University. During his studies, he contributed to mental health research as a Student Research Assistant for the SMaRteN network.
Outside of work, Oliver is a keen debater and remains active in the UK debating community, having previously led the Swansea University Debating Union. He enjoys exploring complex issues from multiple perspectives and values clear, thoughtful communication in policy discussions.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the Local and General Election and working for the Casimir Pulaski Foundation. As well as working for multiple charities on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). Tess obtained her Bachelors of Arts in Politics and International Relations from University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
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