BEIS surrenders £1.6bn R&D funding to treasury

The Central Government Supply Estimates 2022-23 has revealed that the Department of Business, Energy and Industrial Strategy (BEIS) has returned £1.6bn of R&D funding to the Treasury.

Released yesterday (21 February 2023), the Central Government Supply Estimates showed that the funds, which had previously been allocated for EU research programme Horizon Europe and Euratom, or domestic alternatives, had been unused and were to be ‘surrendered’.

With the government having previously confirmed its dedication to increasing R&D spending and promising to protect science and innovation from budget cuts – a welcome commitment from the UK research community – many have now spoken out in criticism of this latest blow to the sector.

“The government's reversal of this position with today's withdrawal of £1.6bn for R&D undermines the Prime Minister's assertions about the importance of science and innovation to the UK's future and the creation, only this month, of a new department to pursue this agenda,” commented Prof. Sarah Main, executive director, Campaign for Science and Engineering (CaSE).

“The government must follow through its ambition for science and innovation with coordinated action and investment across government, not reversals and false starts. Can the Prime Minister now set out how he plans to mitigate this loss and put science and engineering at the heart of the UK's future?”

Sir Adrian Smith, president of the Royal Society, said that the Treasury must ensure that this money is reinvested in research in the coming years.

“The failure of all sides to secure the UK’s association to the EU’s research programmes has now cost UK science £1.6bn,” he commented.

“That comes on top of the talented researchers who have left the UK in order to carry on their collaborative work. How does this sit with the government’s stated mission to have the UK as a science superpower?”

Professor Liam Smeeth, director of the London School of Hygiene & Tropical Medicine (LSHTM) pointed out that whilst the UK has a ‘well-deserved reputation as a world-leading powerhouse in health research’ evidenced by its role in the Covid-19 response, this decision from government could be a huge threat to its success.

“Until today, the UK government did – as a constructive interim measure – appear to be committed to filling any shortfalls in science funding that occurred because of Brexit. This appears to no longer be the case and we face major cuts in investment in science and innovation as well as continued uncertainty over EU funding,” Smeeth said.

“The UK’s position as a global scientific leader is severely threatened. Once our position is lost, rebuilding the excellence of our science and education base in the face of fierce international competition may be an impossible task.”