Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to support long term R&D innovation (a) for all regions and nations of the UK and (b) to support the industries and jobs of the future.

Looking ahead, this Government is determined to build back better with an ambitious target to raise total investment in research and development to 2.4% of UK GDP by 2027.

Already this year, to forge the UK’s future as a global scientific superpower, the government is investing £14.6bn in research and development in 21-22. This funding will be allocated on a UK-wide basis and will therefore help locations across the UK, by:

• Supporting business-led innovation to drive productivity and competitiveness, with at least £490m in 21-22 for Innovate UK to support high tech innovation.
• Funding to address global challenges, including £128 million in 21-22 for Covid-19 Vaccines R&D and over £280 million in 21-22 for net zero innovation, helping the economy to build back stronger and greener.

As much of this will be allocated competitively, it is difficult to predict beneficiaries, however:

• The Net Zero Innovation Portfolio is expected to have a strong regional impact due to the localised and distributed nature of energy production and infrastructure. This will build on the current energy innovation programme, which included the UK’s first Carbon Capture & Use plant in Cheshire and tested the world’s largest offshore wind turbine blade in Northumberland.
• As part of public investment in transport innovation, the government is investing £3 million in the Tees Valley Hydrogen Transport Hub and £20 million in a new Clean Maritime Demonstration Programme, which will include feasibility studies on key sites such as Orkney and Teesside.

Further information on allocations will be determined in due course.