Science and Technology: Economy

Viscount Stansgate Excerpts

Thursday 31st October 2024 Lords Chamber

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[Viscount Stansgate]

That this House takes note of the contribution of science and technology to the UK economy.

[Viscount Stansgate (Lab)]

My Lords, to say it is a privilege and an honour to open a debate of this kind is an understatement. I have been in the House for just three years, and this is the first time that we have had a general debate about the contribution of science and technology—including engineering, research and innovation—to the UK economy. I welcome everyone in the Chamber today. A very impressive range of expertise shines through the speakers’ list, which includes my noble friend the Minister, for whom this is his first debate as Minister. In fact, we will hear from several other distinguished former Ministers of Science, whose experience in some cases stretches back over 30 years.

I am sure that there will be a bipartisan spirit this afternoon, but I begin by paying tribute to the noble Lord, Lord Waldegrave of North Hill, whose 1993 White Paper, Realising Our Potential, was the first time that science policy emerged in the modern era, having been ignored by Governments for far too long. The title of that White Paper remains very relevant today.

I welcome the range of attendance in this debate, and I am sorry that noble Lords have only four minutes to speak. I will highlight the maiden speaker. I made my own maiden speech three years ago this month, and I know just how the noble Baroness, Lady Freeman of Steventon, feels right now. I thank her for choosing today in which to make her own maiden speech, to which we all look forward.

When we begin our speeches, we often make reference to our register of interests, and I am proud to be president of the Parliamentary and Scientific Committee, which is Parliament’s oldest all-party parliamentary group by a long way—85 years this year. That is not in any way a financial interest. I am very pleased that our former chair, Stephen Metcalfe, is with us in the Public Gallery watching the debate. In his own parliamentary career, he also chaired the Science, Innovation and Technology Committee in another place. Now that the Parliamentary and Scientific Committee has been reformed for the new Parliament, I very much hope that Members from all sides of the House will take advantage of the activity we undertake. For example, noble Lords should come to the STEM for BRITAIN event held in March and see the astonishing work of our early-career researchers who represent the future. If they cannot come, they can read about it in Science in Parliament, which is available in the post room and in their pigeonholes.

One of the great benefits of initiating the debate is that it has triggered a wealth of informed briefing from a wide range of scientific societies. Sadly, I cannot possibly make use of most of it in the time available, but it is important that Parliament understands what a formidable array of expertise exists in the country. My profound thanks go to the Royal Society of Biology, the Institute of Physics, the Royal Society of Chemistry, the Physiological Society, the Geological Society, Cancer Research UK, the Institute of Cancer Research, the University of Leeds, the Russell group of universities, the Microbiology Society, the Royal College of Pathologists, the Campaign for Science and Engineering, the Society for Experimental Biology, the Royal Astronomical Society, the Society of Chemical Industry and the Royal Society—not to mention, of course, POST and our own House of Lords Library. With the leave of the House, I intend to place a copy of all the briefings that I have received in the Library, so that it can be of use to Members.

Today is an excellent time to have this debate because of yesterday’s Budget, which referred to our

“extraordinary strengths in science and innovation”.

It also follows the investment summit earlier this month. Both events stressed the Government’s aim to create the long-term stability that is needed to use science and technology to grow the economy. This is a Government who are openly committed to growth and the core message from today’s debate will undoubtedly be to emphasise just how much science and technology contribute to the UK economy. Science is a long-term enabler of opportunity. Scientific advances underpin all areas across our economy and are essential to the Government’s five missions.

I forget who coined the phrase “punching above our weight” to describe the UK’s record in science. The basic statistics are well known. For example, we have about 1% of the world’s population and yet produce 16% of the most highly rated scientific papers. Our scientific research is truly excellent. The Government spend over £20 billion a year on R&D. Oxford Economics has estimated that, in 2023, the life sciences sector alone contributed over £13 billion. DSIT estimated in 2022 that the value of the digital sector, which includes everything from information technology to digital content and media, was over £158 million. In March last year, DSIT also estimated that the value of the UK’s AI sector was already £3.7 billion and growing. In February, the Energy and Climate Intelligence Unit reported that the gross value added of the UK’s net-zero sector, which includes renewables, carbon capture manufacturing et cetera, was already £74 billion.

Also, there is no shortage of science sectors emphasising their own contribution. I will give a few examples. The Royal Astronomical Society says that the growing space sector is worth £19 billion a year. The Institute of Physics points out that the photonics industry, which is the technology of light, had an output of £15 billion in 2023, employing almost 80,000 people—as many as the automotive and aerospace industries combined. The Rolls-Royce small modular reactor programme is forecast to create 40,000 jobs and could generate an enormous export market of up to £250 billion by 2050. Meanwhile, the Royal Society of Chemistry points out that the chemical sciences sector generated £3.2 billion for the Exchequer. The Institute of Cancer Research says that its research has saved the NHS £68 million per year by updating clinical radiotherapy practice for cancer patients. Meanwhile, Cancer Research UK says that every £1 invested in cancer research in 2021 generated £2.80 of economic benefit, to the tune of nearly £1 billion.

In this Parliament and its successor, the life sciences sector holds enormous potential to drive economic growth and productivity, delivering goods, services, treatments, medicines and vaccines that are critical to the nation’s health and our resilience against—I hope not—any future pandemic. Overall, it is estimated that every £1 of public investment in R&D unlocks between £2 and £4 of private R&D investment in the longer term. I am pleased that the DSIT budget will increase from £12.5 billion for 2024-25 to £13.9 billion in 2025-26, which is real-terms increase of 8.5%.

So we have a lot going for us. We have world-class universities, not to mention places such as the Crick Institute, the Wellcome Foundation, the Catapult Network and so on. We have world-renowned public sector research establishments such as the National Physical Laboratory. I well remember a story told by a former Minister of Technology, to whom you might say I have a hereditary connection. He went to visit the NPL. When he was shown around, the director proudly said, “Here we can measure down to the smallest unit of measurement ever known, the POBA”. The Minister, being inquiring, asked, “What is a POBA?” He said, “Oh, Minister, it means point one of bugger all”. I hope that, when my noble friend the Minister next visits the NPL he will discover that it is still using the same unit of measurement today.

A word about the institutional landscape: the Government have been bequeathed a scientific landscape and institutional structure that can be made to work. Building on the science and technology framework published last year, the Government have just published an important industrial strategy Green Paper. This is central to the growth mission and its success will depend, crucially, on the application of science and technology. The Green Paper has identified eight sectors that drive growth: advanced manufacturing, clean energy, defence, creative industries, digital technologies, financial services, life sciences, and professional and business services.

We have UKRI. We have had the Nurse review. We have our world-class universities, a plan for a national data library and Project Gigabit. We also have ARIA, about which I hope we will hear more. We need to take advantage of the UK’s unique strengths to enable world-leading companies to grow and seize opportunities to lead in new and emerging industries. As yesterday’s Budget said,

“we are not doing enough to capitalise on these strengths”.

We must fund successful scale-up companies and not leave other countries to exploit our science to make millions for themselves.

I think our current structure will help. We now have a proper department in DSIT, with a Secretary of State at the Cabinet table for the first time in 30 years and distinguished Ministers in both Houses. We have a Cabinet committee chaired by the Prime Minister. Its job is to

“consider matters related to science and technology, to drive the United Kingdom’s economic growth and national security”.

Those are pretty much the same terms of reference as for this debate. We have a Chief Scientific Adviser and a network of advisers embedded in all departments, and we have a Science Innovation Network, which is embedded in all our embassies.

With a renewed commitment to an industrial strategy, we need to take advantage of the UK’s unique strengths to enable world-leading industries to grow and seize opportunities. If we match our undoubted research expertise with an industrial strategy that plays to our strengths, we can make an impact.

I will give the House an example. Your Lordships’ Science and Technology Committee, of which I am a member, is nearing the end of an inquiry into engineering biology, which is a very exciting new area of science. Put simply, in the future we will be able to make things by growing molecules and cells. Last week, the Government’s Chief Scientific Adviser, Dame Angela McLean, came to us and held up for the committee a handbag. It was not made of leather, nor of plastic; it was made of coconut oil that was processed by bacteria. The food industry is developing meat that is not real meat; it is grown in a laboratory. In the aircraft industry, there is real interest in producing synthetic jet fuel without using carbon or oil. All these new developments offer the additional benefit of recycling and helping us to reach our net-zero targets. That is why, incidentally, it is absolutely right for the Government to set up the regulatory innovation office to exploit these new areas.

What of the future? There are one or two things we must try to do. First, there is no doubt that we need to start with education. It is absolutely vital that we enthuse and inspire the next generation, and it must start in primary schools if not before, opening young hearts and minds to the wonders of science. We must make use of all the many scientific role models that exist, whether it is Maggie Aderin-Pocock on astronomy, Hannah Fry on maths or Hamza Yassin on wildlife photography. Brian Cox’s latest TV series on the solar system has been watched by millions. Of course, David Attenborough remains our national treasure, inspiring us with his documentaries: everything from “Life on Earth” to the new series, next weekend, which I think is entitled “Asia”. I think I am right in saying that my noble friend Lord Winston recently went to a school in Northamptonshire and the head teacher reported an upsurge of interest in science after his inspiring visit.

Secondly, we need to create and sustain a public and society that understand the importance of science and technology and are supportive of innovation. Whenever I meet someone who expresses great scepticism about science or, in recent years, vaccines, I say to them, “Well, just look at your mobile phone. There is not one iota”—perhaps I should say one POBA—“of a feature of a mobile phone that isn’t the result of science. It would not exist without science”.

Thirdly, another key to the future is to be as international as possible. The UK must maximise all available international co-operation. We should join and collaborate with as many international countries as we can, including countries in the Indo-Pacific. We have rejoined Horizon Europe—good—but now we need to prioritise an expanded role in its successor, Framework Programme 10. I have lost count of the number of times that I have been told that we need a visa system, with its costs, that attracts talent rather than deters it.

Fourthly, we must not take our universities for granted. On the contrary, the House is only too well aware of the signs of stress in the HE sector and the funding of our universities. There was a breakfast briefing for Peers on this subject last week.

Fifthly and finally, although I mean no disrespect to my noble friend the Minister, science and technology is too important to be left to DSIT alone. We need nothing less than a sustained cross-departmental science strategy to attract foreign direct investment and the global scientific talent that we need.

By the end of this Parliament, when we use the phrase “science superpower”, I for one want to feel that it is a reality and not a slogan. I beg to move.

--- Later in debate ---

[Viscount Stansgate (Lab)]

My Lords, in making a few closing comments, I wish it was rather like those old red phone boxes, where you could press button B and speak for as long as you like. Sadly, I have only 60 seconds in which to thank everyone for taking part. The wealth of expertise in this House is amazing, and today’s debate is an example of the House at its best. There has been a good bipartisan spirit; there may have been a few comments about the Budget but, as somebody once said, recollections may vary. On the whole, the debate has been conducted in a good spirit.

I particularly thank my noble friend Lady Freeman, if I may call her that, for her excellent maiden speech—look at the impact it has had on all of us here today. I was rather pleased to convene a sub-committee of the “former Science Ministers’ club” as part of today’s debate. I very much hope that the Minister will feel that he has the support of the House as he undertakes his role. I, for one, am going to send a copy of today’s Hansard to members of the Cabinet committee, as it is worth them reading the debate and having this on their agenda.

Motion agreed.