Ministers have confirmed that UK Research and Innovation (UKRI) will receive a flat cash settlement in the next financial year, handing it an overall budget?of ?8.8 billion.

Announcing the annual allocation for the UK¡¯s main research funder on 4 April, the Department for Science, Innovation and Technology said the settlement was part of a ¡°record ?13.9 billion of R&D [research and development] funding¡± that will be spent on ¡°transformational research and development in the next year in areas like life sciences, green energy, engineering and beyond¡±.

That deal is roughly the same as the ?8.874 million awarded to UKRI in 2024-25, the final year of a ?which saw UKRI¡¯s budget grow from ?7.7 billion in 2021-22 to almost ?9 billion in 2024-25, including a ?500 million uplift last year.

With inflation running at almost 3 per cent, the latest allocation represents a cut in the real value of UK research funding, though a flat cash settlement may be viewed as a success for science secretary Peter Kyle and science minister Patrick Vallance given likely cuts awaiting other Whitehall departments outside health and defence.

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The settlement follows warnings from UKRI¡¯s chief executive Ottoline Leyser that this year¡¯s budget allocations would be ¡°tight¡±, with a Research England council meeting in November hearing that a flat cash settlement for the ?2 billion of annual quality-related research funding would represent an effective ?29 million cut.

Overall, DSIT will receive ?13.9 billion in 2024-25 with ?20.4 billion invested in total by the UK government once research spending by other departments is included.

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Welcoming the settlement, Kyle said the ¡°?13.9 billion investment in R&D is ultimately an investment in the future of the UK¡±.

¡°R&D is essential to fulfilling this government¡¯s Plan for Change ¨C whether in improving lives across the UK and beyond through new life-saving drugs, helping us build a cleaner, greener future or in exploring beyond our planet to unlock new discoveries that keep us healthy, safe and prosperous and much more besides,¡± he said.

¡°It is also central to creating highly paid jobs and opportunities to set up new businesses across the UK, which will drive the economic growth that is key to supporting our public services and enhancing our daily lives,¡± he continued.

Joe Marshall, chief executive of the National Centre for Universities and Business, described the government¡¯s continued commitment to research investment as ¡°commendable¡± given the ¡°challenging fiscal times¡±.

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However, he added that there was ¡°more work to be done¡±, comparing the flat cash settlement to recent ¡°real terms¡± uplifts in other countries. ¡°China, in particular, is outpacing the field, with a staggering 8.7 per cent growth between 2022 and 2023, while countries like Japan (2.7 per cent) and Korea (3.7 per cent) are also accelerating their investments,¡± he said.

¡°In the upcoming spending review, the UK government should take decisive action with a forward-thinking spending and policy plan that not only preserves the UK¡¯s research leadership but also strengthens business R&D and creates a flourishing innovation ecosystem,¡± said Marshall.

jack.grove@timeshighereducation.com