Science and Technology Superpower (Science and Technology Committee Report)

Viscount Camrose Excerpts

Wednesday 7th June 2023 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Science, Innovation and Technology (Viscount Camrose) (Con)]

My Lords, I add my thanks to the noble Baroness for securing this important debate and indeed to the whole committee. On a personal level, as a still relatively new Minister, it is incredibly helpful to have set out in the report a not always positive but clear-eyed critique of where we are going in science policy. I am grateful for that and for the excellent contributions made by all noble Lords in today’s debate.

As a number of noble Lords mentioned, in February, the Prime Minister announced the creation of the Department for Science, Innovation and Technology—DSIT. It will promote a diverse research and innovation system, connecting discovery science to new companies, growth and jobs. I believe and hope that the creation of DSIT has addressed many of the challenges raised by the Select Committee in its report. It will provide strategic coherence in policy and strategy for science and tech. I recognise that there are different views on this, but it has been warmly welcomed by a large number of external stakeholders for putting science and tech at the heart of the Government’s agenda. Of course, all government departments undertake R&D to support their own policy objectives, but DSIT plays a unique role as steward of the UK R&D system across Whitehall and nationally, supporting world-class R&D and the underpinning investment through our universities and labs to enable a thriving R&D system.

On 6 March, the Prime Minister and the DSIT Secretary of State launched the science and technology framework—the Government’s plan to cement the UK’s place as a science and tech superpower by 2030. The framework is there to challenge every part of government to put the UK at the forefront of global science and technology. Action will focus on creating the right environment to develop critical technologies; investing in R&D, talent and skills; financing innovative science and tech companies; creating international opportunities; providing access to physical and digital infrastructure; and improving regulation and standards. We have already taken significant steps. Since the launch of the S&T framework we have announced £2.5 billion over the next decade for quantum tech; launched a £250 million tech missions fund for AI, quantum and engineering biology; launched the AI regulation White Paper; and announced a £1 billion strategy for the UK’s semiconductor sector.

In addition, we have been progressing work to define clear strategies for individual sectors, such as the AI action plan, the life sciences strategy and the national space strategy. These actions will help to ensure that the UK has the skills, talent and infrastructure to take a global lead in game-changing technologies and ground-breaking science.

While DSIT is taking the lead on the S&T framework, this is necessarily a cross-government effort. For example, use of government procurement to stimulate innovation is led from the Cabinet Office but needs to harness the big budgets, such as defence, to really have impact. By the end of 2023, we will publish an update setting out the progress that we have made and the further action that must be taken on our path to being a science and tech superpower by 2030.

As set out in the 2023 Spring Budget, the Government will turn their vision for UK enterprise into a reality by supporting growth in the sectors of the future. This includes the five critical technologies alongside life sciences and green technologies. Underpinning the Government’s long-term strategy and support for the sectors of the future is a commitment to increasing publicly funded and economy-wide R&D spending. The Government have recommitted to increasing public expenditure on R&D to £20 billion per annum by 2024-25. I take the points that were raised about needing to compete in a high-spending international environment. This represents a cash increase of around one-third and is the largest ever increase in public R&D spending over a spending review period.

I turn to the matter that I think almost everybody raised of international collaboration. We need to think globally if we are to make the most effective progress and tackle global challenges. We want to be the partner of choice for other leading science nations and to tap into the rising potential of emerging economies, ensuring that we are seen as a natural partner. For example, the UK in April signed a landmark memorandum of understanding on research and innovation with India, enabling quicker, deeper collaboration that will drive economic growth, create skilled jobs and improve lives in the UK, India and worldwide.

Attracting high-skilled international talent will bring long-term benefits to the whole of the UK. Science and Technology Framework presents a talent and skills vision for 2030 in which the UK has a large and varied base of skilled technical and entrepreneurial talent, able to respond quickly to the needs of industry, academia and government. This includes our immigration offer for talented researchers and innovators to come to the UK, including via the high potential route for recent graduates of top global universities and the scale-up route for individuals recruited by a UK-based high-growth scale-up company.

I turn to Horizon, which I know is a subject of great importance not just here but around the research community and the country. The Government are fully committed to science and research collaboration, including with our European counterparts. That is why we continue to be in discussions, which, contrary to the point raised, are in good faith, with our European counterparts on the UK’s involvement in Horizon Europe and hope that our negotiations will be successful. That is our strong preference, but we are clear that our participation must be fair for the UK’s researchers, businesses and taxpayers. We have set out our bold, ambitious alternative to Horizon Europe—Pioneer—if we are not able to secure association on fair and appropriate terms. Negotiations are ongoing, so I cannot comment on their content except to say that our priority remains to ensure that the UK’s R&D sector gets the maximum level of support to allow it to continue its ground-breaking research and collaboration with international partners.

I will now turn to some of the specific points raised. In response to the noble Baroness, Lady Brown, whose remarks I thank her for, I shall focus my comments on her three key questions. First, on Horizon, as I have noted, we are moving forward with the discussions and our involvement in EU science and research programmes. As several noble Lords have noted, delays over two years have caused serious and lasting damage to UK R&D. As I say, we hope sincerely that negotiations will be successful, but the guiding principle remains that participation has to be fair for UK researchers, businesses and taxpayers.

To provide the industry with certainty, we recognise that we must come to a resolution as quickly as possible. To be as clear as I can be, we want to associate with Horizon Europe, but it has to be on fair terms, and if we cannot reach fair and appropriate terms, we will launch Pioneer. Meanwhile we have established the Horizon guarantee to ensure that there is no loss in funding for the UK sector. This will be in place to cover all Horizon Europe calls that close on or before the end of June 2023. We are keeping the scope of the guarantee under review and will ensure that there is no gap in funding flowing to the sector.

Following the recent machinery of government changes, OSTS has now been integrated into the newly created Department for Science, Innovation and Technology. The National Science and Technology Council will remain a Cabinet committee following the recent changes, with the Prime Minister as chair.

On skills, which were also raised by the noble Baroness, Lady Brown, the Government welcome the committee’s inquiry on people and skills in STEM and have responded to the recommendations. The Government remain committed to taking forward the R&D people and culture strategy. The Science and Technology Framework prioritises action on talent and skills which looks at the wider system, supporting STEM skills across the economy.

In response to the noble Baroness, Lady Brown, my noble friend Lord Wei and the noble Viscount, Lord Stansgate, in relation to NSTC, there is a long-standing convention that the frequency, attendance list and minutes of Cabinet and its committees are not made public to protect the principle of collective agreement by Ministers.

On the science and tech framework, by the end of 2023, we will publish an update setting out the progress that we have made and the further action that must be taken on our path to being a science and technology superpower by 2030.

My noble friend Lord Holmes asked how the specific strategies fit into an overall coherent approach. The Government have set out their priorities through a suite of strategies, including the R&D road map, the UK innovation strategy and the people and culture strategy, which take a strategic or thematic overview to drive delivery of the Government’s priorities. We agree that policy coherence is essential for the success of the UK’s R&D mission.

I thank the noble Lord, Lord Winston, for his comments and agree with the points he raised about the importance of support for researchers. UKRI is working to improve the experience of applying for funding through its Simpler and Better Funding programme.

In response to the question about ensuring good monitoring and evaluation data on the R&D that UKRI funds, information about research outputs is tracked by UKRI and other funders as a requirement. Monitoring and evaluation of the impact of funding is undertaken to understand that impact.

The noble Baroness, Lady Walmsley, asked how we track what other nations are doing. The FCDO’s science and innovation network based in embassies across the world provides valuable intelligence on the science and tech strategies of other nations which informs the UK’s approach and supports international dialogue. The noble Baronesses, Lady Walmsley and Lady Northover, asked whether scientific visa applications are subsidising other functions in the Home Office. I accept that the global race for science, research, technology and innovation is increasingly competitive, and the Government aim to make the UK the best place in the world for scientists, innovators and entrepreneurs to live and work. The Government are committed to ensuring that the UK’s immigration system supports growth and is clear and supportive for scientists, academics and entrepreneurs—

[Baroness Walmsley (LD)]

I am sorry to interrupt the Minister but I wonder if he would write to me with the answer to my question.

[Viscount Camrose (Con)]

I am happy to write to the noble Baroness.

In response to how the Government are taking a lead on regulation without the downside of regulatory divergence, the Government recognise that technological innovation is fundamental to unlocking growth and are committed to growing the UK’s global reputation for regulatory best practice.

In response to the question from the noble Baroness and the noble Lord, Lord Rees, on how we will get more specialist teachers, specifically in mathematics, I support the Prime Minister’s aim to ensure that every young person has the skills that they need to succeed in life. Higher maths attainment will also help to grow the economy, creating better paid jobs and opportunity for all, which is why I also support his ambition to ensure that every young person studies some form of maths up to the age of 18.

In response to the noble Lord, Lord Patel, I thank him for his helpful comments on the importance of developing a global science partnership. I very much agree that collaboration is at the heart of being a science superpower. Last year we announced the first phase of the new International Science Partnerships Fund, underpinned by funding of £119 million over this spending review period.

My noble friend Lord Wei asked about building on the success of the Vaccine Taskforce. There will be ongoing lessons to learn from the Covid pandemic. We are demonstrating our ambition and delivering outcomes for patients through our healthcare missions. We have announced the chairs and details of the mental health and addiction missions as well as the cancer mission chair. These missions seek to replicate the success of the Vaccine Taskforce in areas where we face the greatest healthcare challenges, and illustrate the impact of industry-government collaboration.

In response to the noble Viscount, Lord Stansgate, who asked about ARIA’s progress, it has been established and is still in its early stage of development. Over the coming months, ARIA is recruiting its first cohort of programme directors, who will help to shape and inform the agency’s first set of research programmes. None the less, funding transformative research with long-term benefits will require patience, as prepared for in the agency’s design.

In response to the noble Lord, Lord Krebs, I strongly agree with him on the vital importance of long-term thinking and learning the lessons from history. This is why the S&T framework necessarily takes a long-term view of the strategic outcomes that we seek to deliver in the decades to come.

The noble Lord, Lord Rees, brought up the risks of precarity for research careers. Postgraduate researchers are key to the success of research groups, and we are looking at how to support them through a new deal for PGRs. UKRI has undertaken a sector consultation as a first phase of this long-term programme of work, and the results will be published soon, in 2023.

The noble Baroness, Lady Bennett, raised the grant review of UKRI. DSIT is working closely with UKRI to implement the recommendations of the review while overseeing UKRI’s transformation programme to support improved governance and decision-making. The noble Baroness mentioned the recent changes to the ONS numbers on total R&D investment in the UK, as did the noble Viscount, Lord Hanworth. It is good news that the ONS has improved its methodology for estimating R&D spend in the UK and that, as a result, we have moved above countries such as France in terms of R&D spend as a proportion of GDP. The Government are taking great strides in growing public R&D spend in the UK, with the Chancellor recommitting in the most recent Budget to growing public spend to £20 billion per annum by 2024-25.

A number of noble Lords have raised the recommendations of the recent Nurse review. The Secretary of State for Science, Innovation and Technology outlined in her letter to the lead reviewer, Paul Nurse, that the landscape review would play a foundational role in delivering the UK Government’s vision and would set out a detailed response to the review’s recommendations in the coming months.

The noble Lord, Lord Mair, discussed industry engagement. The innovation strategy set out our plan for driving investment in UK R&D. We have increased funding for core Innovate UK programmes which are successful in crowding in private sector leverage, so that they reach £1.1 billion per year by 2024-25. This is over £300 million, or 66% more per year than in 2021-22, and will ensure that it can support business in bringing innovations to market.

In closing, I thank noble Lords for such a detailed, well-informed and wide-ranging debate. The newly created department will continue to address the challenges offered by the Select Committee and make clear progress to achieve our science and technology superpower ambitions, with a clear focus on delivery.

[Viscount Stansgate (Lab)]

My Lords, may I say that I fully appreciate that the Minister is not personally involved in the negotiations over Horizon Europe? But in his remarks, he has referred to serious and lasting damage by non-association. Can he at least take back to the department the near-universal view in this debate that we should join and consider the fact that the Government specifically said after Brexit that this is the one thing that we want to join? Let us think of the consequences of our future co-operation with our European neighbour on a whole range of things if it turns out that we do not join what we said we wanted to.

[Viscount Camrose (Con)]

I am happy to take not just the noble Lord’s remarks but the sense of the Committee on that back to the department.