Treasury Support for UK Science

Jo Churchill Excerpts

Wednesday 4th November 2015 Westminster Hall

[Jo Churchill (Bury St Edmunds) (Con)]

I thank the hon. Member for Penistone and Stocksbridge (Angela Smith) for securing this important debate.

The depth and breadth of the UK science sector belie the UK’s size, but people should make no mistake: the UK is in the midst of the fast growth of a modern scientific revolution. Having started slowly during the first half of the last century, that revolution has gathered pace and, as the Government recognise in their productivity plan, it is driving UK growth. Yet we have heard the statistics, which I will not repeat, and about the sector’s worries. I have met many pharmaceutical companies and agri-tech companies, and they have repeated those worries to me, too.

To turn to the positives, the UK is a leader in Formula 1 racing car development, with seven of the 10 Formula 1 constructors based here. The worldwide revenues of almost £4 billion that we see from the sector are testimony to the fact that Formula 1 has settled here. The industry’s development in the UK delivers improvements not only to our cars and bikes, but to our advanced engineering sector and, more importantly, our hospitals. It delivers innovative design and thinking across sectors. In just five years, the UK has gone from 14th to 2nd in the global innovation index, but it is important that we keep up the pressure. The future of the industry in the UK lies in leading its competitors. We look forward to welcoming the world’s first 1,000 mph car from the British-led Bloodhound Project. That would not be happening if we were not investing in such industries or in other science and research-led fields. If we do not continue to fund the industry, not only will the UK fall behind, but we could well lose its science sector.

We have seen huge medical advances in the last 40 years—indeed, the first test-tube baby was British. Some 380 pharmaceutical companies are based in the UK, employing 70,000 people and with an annual turnover of £30 billion. The medical technology and medical biotechnology sectors employ more than 96,000 people and have a combined annual turnover of a further £20 billion. As we have heard, the life sciences industry is truly a jewel in the crown of our economy. Companies, universities and charities invest hundreds of millions of pounds. Last year, Cancer Research UK alone spent £434 million on research institutes, hospitals and universities across the country.

The Government do provide essential investment in UK science, but we still fall short compared with our major competitors. As the hon. Lady mentioned, we invest over 50% less than South Korea, the world’s leading investor. We need to make sure we are in the premier league. We must support the industry to research, to learn, to fail and to grow. That will ensure that the UK continues the push global boundaries in research and development.

As Members have pointed out, we lead the world in research in many disciplines, and all with a population that is less than 1% of the world’s total. To keep our place at the top of so many fields, it is vital that we do not simply rely on private initiatives, but back our pledge to industry with a commitment. Science has the potential to grow our economy and expand our horizons, giving us far more bang for our buck than most areas.

The science sector can deliver if it is helped, but as in many cases, simply handing over money is not the answer. To ensure that we get the most out of the sector, we must look to schemes that incentivise the best in the field and drive growth. We need competitive bidding processes to reinforce successful organisations and tax breaks to alleviate the load on start-up businesses and to grow cutting-edge enterprises. We also need match funding, especially in the academic arena, for R and D projects. As the hon. Member for East Antrim (Sammy Wilson) mentioned, assistance through Horizon 2020 is a good idea. Greater input from the scientific community in apportioning grants would also give far greater credibility to funding.

The Government invested £198 million through the charity research support fund only last year. One benefit was that that levered in £805 million from charities, which was then invested in our universities. The Treasury’s investment in science supports breakthroughs in pharmaceuticals and prevents and cures diseases. Spending and saving are a double win in this ageing society.

It is important that we push the boundaries—that we make a real difference to our scientific heritage. However, while the science industry is proving that it can deliver the results, it is up to a strong and committed Government to deliver the security. I therefore urge the Government to continue to protect the science budget across Departments this November, to unleash the full potential of the UK and the science industry.