Multiannual Financial Framework

Paul Blomfield Excerpts

Wednesday 31st October 2012 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

We should remind ourselves that just as there is a majority in the House, of which I am a part, in favour of a reduction in the EU budget, there is a much larger majority, of which I am also a part, that believes that our future lies at the heart of Europe and with our membership of the European Union.

We should therefore take care—more care than some Members have—with how we frame any debate on the EU budget. We should not frame it, as the Daily Express does, as if all EU spending is bad and that the only purpose of Brussels is to take money from us. I come from a region that has benefited enormously from European structural funds, and we should have spent more time in the debate considering how we can engage positively to shape negotiations on the priorities for the EU budget. I shall make several specific points about research and innovation, to which I hope that the Minister will respond.

EU research and innovation funding contributes 10% of our national science budget, and the budget negotiations give us an important opportunity to shape investment priorities for the benefit of the UK economy. The more the EU invests in research and innovation, the more the UK benefits, because the quality, breadth and depth of UK research puts us in a position whereby we gain disproportionately from European research programmes. Nearly 15% of the EU’s funding from the FP7 framework programme for research has gone to UK researchers, and the total FP7 contribution to UK research is expected to reach €7 billion over the life of the programme. The UK is involved in more successful FP7 projects than either France or Germany, accounting for 40% of all grants to date. We also benefit extensively from the collaboration and research networks that the EU facilitates. Of the 5,105 research projects that have been funded under FP7, 43% include UK partners.

Only about 8% of the proposed budget is allocated to Horizon 2020, which is the replacement for the FP7 programme. That has been presented as an increase, because there are several new projects within Horizon 2020. I think that the Government would support those projects, but on the basis of past negotiations, there is concern among businesses and universities that the research budget is especially vulnerable to cuts. We know that innovation plays an important role in producing growth in the UK, and 54% of the jobs grown between 2000 and 2005 were in innovative companies. However, such companies account for only 6% of UK businesses, and are particularly involved in pharmaceuticals and biotechnical research.

We know that future growth will rely on knowledge-based industries, so I look to the Government to make two commitments: first, that the additional projects in Horizon 2020, which I am sure they would support, will be considered outside the framework; and, secondly, that they will argue the case for protecting the research and innovation budget in the overall negotiations.

[Mr Speaker]

The Minister will be called at 6.55 pm, but until then we will hear from Conor Burns.