Government announces £55 billion R&D funding boost to unlock UK breakthroughs from health to clean energy

4 Nov 2025 11:19 AM

The UK government has confirmed £55 billion of long-term R&D funding for the UK’s research agencies and bodies in an effort to create jobs, boost the economy and deliver science and tech breakthroughs that improve lives. The investment, made through the Department for Science, Innovation and Technology (DSIT), represents the department’s largest-ever R&D investment and a real-terms rise in funding for national research bodies. 

Key Highlights

• Scientific Breakthroughs – This funding will boost R&D to take breakthroughs that drive growth and improve our daily lives to the next level. 
• Supporting Businesses – Businesses grow faster because of public R&D. In the six years following their first R&D grant, the average supported business sees employment rise by 21% and turnover increase by 23% compared to similar firms that did not receive funding. Many of the UK’s most innovative companies have used public R&D support as a springboard to achieve significant success. 
• Economic Benefit – Every £1 spent by government on R&D delivers £8 of wider economic benefit. Crowding in private investment is a key part of this, with every £1 of public money invested in R&D crowding in a further £2 in private investment, on average. 

Spending Review

The R&D funding confirmed in this announcement, covering the Spending Review period ending 2029/2030, includes:  

• More than £38 billion to be delivered by UKRI across the period, including nearly £10 billion in 2029/2030 alone. 
• The budget for the Advanced Research + Invention Agency (ARIA) – the UK’s agency backing bold, long-term breakthroughs – which will rise from £220 million a year to £400 million a year by 2029/2030.  
• Over £1.4 billion in funding for the Met Office, intended to keep the UK at the forefront of climate science. 
• Over £900 million for the UK’s prestigious National Academies. 
• Over £550 million for the National Measurement System and £240 million for the AI Security Institute. 

DSIT’s overall R&D budget will grow in real terms over the Spending Review period, totalling £58.5 billion from 2026/2027 to 2029/2030.  

Outlook for UK business and industry

This funding will drive investment in universities, research institutes, and businesses across the UK, supporting innovation and the creation of new, high-skilled jobs in addition to the 3 million already linked to R&D. The announcement also provides long-term visibility and clarity on the development of DSIT’s R&D budgets, giving businesses the confidence to plan and invest for the future. 

Further information will be published later this year, including more detail on UKRI’s budgets and more information on the outcomes the funding will support.   

You can read the full announcement here.