Question to the Wales Office:

To ask the Secretary of State for Wales, what discussion she had with the Welsh Government on the potential devolution of decision making on UK Government funded R&D grants in Wales.

I am committed to working closely with the Welsh Government on innovation and economic growth. On 20 May, I held my first call with the new First Minister of Wales Rhun ap Iorwerth. I made clear the benefit of both the UK and Welsh Governments working together on shared priorities around the cost of living and poverty as well as public services and economic growth, including the delivery of clean energy infrastructure in Wales.

R&D funding is partially devolved; Devolved Governments receive funding in their block grants which includes consequentials arising from UKRI allocations made through Research England. Devolved Governments can allocate block grant funding as they choose within devolved policy areas, which include higher education and economic development. This includes the ability to allocate funding to R&D according to their priorities. According to data from the Office for National Statistics, in 2024/25, £150 million R&D funding was invested through the Welsh Government and Medr.

In addition, through the Local Innovation Partnerships Fund (LIPF), we are also empowering local leaders in 17 regions across the UK to target R&D investment and unleash their full innovation potential. The Government is investing up to £50 million through the LIPF in Wales between 2026 and 2031, this includes £30 million for Cardiff Capital Region and £20 million for South West Wales. The Government is also considering the future of LIPF in the nations.