Spring statement and an emerging R&D framework
As expected, there were no significant announcements for higher education or research in the Chancellor’s spring statement, with decisions on R&D budgets, tuition fees and other detailed spending commitments reserved for Phase 2 of the Spending Review in June.
The statement confirmed the day-to-day spending and capital spending envelopes for Phase 2 of the Spending Review, with resource budgets growing at a slightly slower rate than anticipated at the autumn Budget (1.2% per year vs 1.3% previously). However, the Chancellor announced a small increase to capital investment over the Spending Review period (of around £2bn per year).
Much of the Chancellor’s speech focused on ‘securing Britain’s future’ amid global instability and security threats. She also confirmed military spending will be “at the heart of the Industrial Strategy”. The UK Government had already announced a number of measures ahead of the spring statement including cutting the international aid budget to fund increased military spending and reducing the size of the civil service.
Whilst the statement contained few announcements on R&D, it emerged in early April (£) that Research England is considering whether it should match QR funding for universities to the UK Government’s objectives on economic growth. The body’s executive chair, Jessica Corner, was quoted as saying that Research England is “taking a deeper look” at arrangements in a review of strategic institutional research funding, which includes QR funding and the Higher Education Innovation Fund. The review will look for ways to improve transparency about what the money is spent on, and to link it to economic growth.
Meanwhile, UKRI’s budget will fall in 2025-26 compared with the previous year, dropping to £8.8 billion for 2025-26 from an initial £8.9bn allocation the previous year. Interestingly, DSIT’s overall R&D budget, which includes UKRI, is increasing from £12.5bn in 2024-25 to £13.9bn in the coming financial year – but with less money being distributed via research councils.
A few weeks after the spring statement, Research Professional reported (£) that the UK Government’s science minister, Patrick Vallance, is drawing up plans for “reforming the R&D system over the longer term” around a “limited set” of four long-term priorities, namely:
- Clarity on a limited set of long-term R&D priorities – providing stability and certainty to the system.
- Efficient and effective public spending decisions on R&D – delivering on the government’s objectives whilst representing value for money.
- Public and private sector R&D that supports growth and innovation.
- Building a thriving R&D system across the UK – ensuring the UK is a great place to undertake research.
The minister’s plans are still a work in progress but a framework to achieve his reforms has been developed within DSIT, with a number of officials working on the plan.
Other news in brief
- Franchise controversy: In late March, a Sunday Times investigation (£) found evidence of potential fraud and abuse of franchised HE courses. In response, the Education Secretary for England pledged to bring forward legislation at the first available opportunity to give new regulatory powers to OfSE to crack down on the issue. A lengthy WonkHE article does a good job of unpacking the problems but also identifying the complexities in addressing them.
- Ongoing HE financial woes: Not long after the Office for Students in England warned of the risk of a large university suddenly going bust, further anxiety was created by Research England issuing new guidance to English universities asking for prior notice of “significant events” such as institutional closures or mergers.
- HEIF uplift call: The Russell Group has called for an uplift to Higher Education Innovation Funding in order to boost economic growth.