Chi Onwurah
Main Page: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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I congratulate the hon. Member for Oxford West and Abingdon (Nicola Blackwood) on securing a debate on such an important subject and on the excellence of her speech. As one of those STEM-qualified women who are no longer working directly in STEM, I was very impressed by the breadth and depth of her analysis, even if I do not agree with every one of her conclusions. Her constituency certainly has an excellent advocate.
Oxford West and Abingdon is home to excellent science research, as are many of our great university towns: London, Manchester, Cambridge, Liverpool, Bristol, Southampton, Edinburgh and, of course, my own constituency of Newcastle, to name but a few. However, it is clear from the speeches and interventions made today that hon. Members on both sides of the Chamber have concerns that go wider than the science research carried out in their constituencies.
I am sure that even if his colleagues in BIS had not been in China or otherwise engaged, the Culture Minister would still have been eager to come to this debate and set out the Government’s policies on science research. That is recognition of the hugely important role that science plays in our society. From the sharpened stone to the mobile phone, scientific developments have changed society and brought new opportunities. Indeed, I am sure that if decent research grants had been available in prehistory, it would not have taken 2 million years to go from sharpened stones to the stone axe. Equally, the Egyptian pyramids would not have required quite so much slave labour—the wheel could have taken a bit more of the strain.
To take an example closer to our own day and age, the mobile phone—we all have one—is a result of decades of public sector defence research into wireless transmissions; billions of private sector investment in R and D, infrastructure and commercialisation; academic research into cutting-edge modulation techniques; and Government-led access to spectrum and global protocol standardisation. The result is a technology that enables a farmer in Kenya to know the market price of corn on the Chicago stock exchange, and ensures that information about voting irregularities in Burma or Iran can be tweeted across the world before the voting is over.
Science changes society, and generates wealth. The Campaign for Science and Engineering has estimated that investment in science research gives a return of 30% a year in perpetuity. Right now, we need that return more than ever, so we are right to treat this debate as hugely important. To be fair, the Chancellor of the Exchequer, in the comprehensive spending review statement, claimed that he was protecting the science budget, as many hon. Members have gratefully commented. In his final flourish, under the sub-heading “growth and promoting a private sector recovery”, he said:
“I have decided to protect the science budget. Britain is a world leader in scientific research and that is vital to our future economic success. That is why I am proposing that we do not cut the cash going to the science budget.”—[Official Report, 20 October 2010; Vol. 516, c. 961.]
Now let us consider what the Chancellor did not say. As has been pointed out, a cash freeze means a 10% cut—assuming current rates of inflation—in real terms, or £460 million, at a time when the rest of the world, including the US, China, France and Germany are increasing their science spend. Also, what the Chancellor calls the “science budget” is only 50% of Government science investment in the UK. The rest, including departmental R and D, capital expenditure, R and D tax credits and RDA spending, has not been frozen or ring-fenced and therefore is vulnerable to cuts. In the case of the RDAs, we know that their science funding of £440 million a year has been lost. If other expenditure is cut at the same rate as departmental expenditure—let us remember that this is science funding that has deliberately not been ring-fenced—we are looking at a cut of 10% in cash terms.
In July, the Royal Society said that
“severe cuts of 10% or more in cash terms...threaten to devastate British science, impair the future growth of the economy and derail the UK’s ability to govern effectively and tackle global challenges. Regaining our scientific pre-eminence, with all the economic and social benefits that this brings, would be impossible or cripplingly expensive for future generations.”
Although the upgrade of the Diamond Light Source synchrotron in the Minister’s constituency has been secured, the rest of the capital budget, as has been pointed out, has not been safeguarded. Nature reports that the research councils have been warned to expect at least a 30% cut in their capital funding. Hon. Members have pointed out that as a result of those capital cuts, the Science and Technology Facilities Council, which funds the Rutherford Appleton laboratory in the constituency of the hon. Member for Oxford West and Abingdon—
I apologise. The STFC, which funds that laboratory in the Minister’s constituency, is likely to be hit as the bulk of its budget is capital. High-tech European partnership projects such as JET—the Joint European Torus at the Culham centre for fusion energy in neighbouring Henley—are funded through the capital budget. They will need to find extra money to cover inflation. That might result in UK researchers having to cut usage while still paying high fixed costs, or to cut other areas. As the Royal Society says, that would dramatically reduce the efficiency of our investment.
Overall, there could be far-reaching consequences in the UK economy. Research Councils UK has calculated that a cut of £l billion in science spending results in a drop of £10 billion in gross domestic product. Therefore, the protection offered by the Chancellor seems rather flimsy, especially in the competitive world of global science. China is stoking its engine of innovation with 2.5% of its GDP and an 8% rise this year. I hope the Secretary of State for Business, Innovation and Skills will be listening to his hosts in China in that regard at least.
The situation is somewhat worse than it first appears. We have agreed that we need to rebalance our economy, but we do not want to do that by reducing the financial sector—absolutely not. We want to do it by growing other sectors, such as advanced manufacturing.
In addition to the cuts to science funding, we have further cuts disabling the vital economic levers that translate scientific understanding into commercial ideas. For example, programmes funded by the RDAs, which supported the commercialisation of scientific discoveries, which we have discussed, have already been cut—such as the Innovation Machine in Newcastle.
It was mentioned that the Prime Minister announced funding for the technology and innovation centres to the tune of £200 million. However, in Germany, where the model they are based on is located, six times more is spent each year on running costs.
Given that our situation and the funding for science are under such threat, I ask the Minister to confirm a number of points. Will Government spending on science that is not in the £4.6 billion be safeguarded? Are the Government intending to increase science spend as a proportion of GDP, in line with European targets? Do they acknowledge the vital role they must play in helping to commercialise new technologies? Finally, will R and D tax credits be safeguarded?
We need the jobs that come from the timely exploitation of scientific discoveries. The Government’s plans for science and research endanger all our futures.