The UK will see its biggest ever increase in research and
development investment and a new fund to transform transport
connections within city regions across the country, the Prime
Minister announced today.
As part of the Industrial Strategy’s aim to improve productivity
and create better and higher-paying jobs across the UK, the
government will:
- Work with industry to boost spending on R&D to 2.4 per
cent of GDP by 2027, which could increase public and private
R&D investment by as much as £80 billion over the next 10
years. We will start by making an extra investment of £2.3
billion in 2021/22, raising total public investment in R&D to
£12.5 billion that year alone.
- Launch a £1.7 billion Transforming Cities Fund that will
improve transport links and promote local growth within city
regions, placing cities at the heart of our industrial strategy.
This includes £250 million for better transport in the West
Midlands.
The Prime Minister will visit the West Midlands today with the
Chancellor and Business Secretary beginning a week in which the
government will set out its plan for a stronger economy and
fairer society.
Writing in The Times today, the Prime Minister said:
“One of my first actions as Prime Minister was to begin the
development of a modern industrial strategy that will help
businesses to create high-quality, well paid jobs right across
the country.
“This is a new long-term approach to shaping a stronger and
fairer economy for decades to come.
“It helps young people to develop the skills they need to take up
the high-paid, high-skilled jobs of the future.
“Our Industrial Strategy will propel Britain to global leadership
of the industries of the future, seizing the big opportunities of
our time – from Artificial Intelligence and Big Data to clean
energy and self-driving vehicles.”
This investment will see public R&D spending increase as a
share of GDP for each of the next five years and bring investment
to levels last seen in the 1980s. It builds on the commitment
made last year to raise R&D spending from £9bn in 2015/16 to
£12bn in 2020/21.
Next Monday the launch
of the Industrial Strategy White Paper will announce four Grand
Challenges that reflect global trends that will shape our future
and industries where the UK has an edge, these are artificial
intelligence and the data economy; clean growth; healthy ageing;
and the future of mobility.
The government will work with business, academia and civil
society to build on UK strengths in these areas and ensure
Britain’s economy is fit for the future. The Business Secretary
will set out more detail on these Grand Challenges next
week.
The Business Secretary, said:
“Through our Industrial Strategy we are committed to building a
knowledge and innovation-led economy and this increase in R&D
investment, to 2.4 per cent of GDP, is a landmark moment for the
country.
"The UK is a world leader in science and innovation. By
delivering this significant increase as part of our Industrial
Strategy, we are building on our strengths and working with
business to ensure that UK scientists and researchers continue to
push the boundaries of innovation.
“We want the UK to attract, and create, the best and brightest
talents, from Nobel Prize winners to ambitious graduate students,
and this game-changing investment will ensure we are the home
of the industries of the future and high-quality, good
jobs.”
The Transforming Cities Fund will address weaknesses in city
transport systems in order to raise productivity and spread
prosperity. It will fund new local transport links, making it
easier to travel between often more prosperous city centres and
frequently struggling suburbs.
This will help make sure people across the country have better
options to combine different modes of transport – supporting
projects which will improve connectivity, reduce congestion and
introduce new mobility services and technology.
The Secretary of State for Transport, said:
“Investment in transport is crucial to a strong and resilient
economy. The Transforming Cities Fund will drive productivity and
growth in cities where this is most needed, connecting
communities and making it quicker and easier for people to get
around.
“We have already seen the impact of better integrated transport
links for both passengers and the local economy in cities like
Nottingham and Manchester. This new fund will enable more English
cities to reap these benefits, helping to deliver the
opportunities and ambition of the Industrial Strategy across the
country, as well as driving forward the Northern Powerhouse and
Midlands Engine.”
Notes to editors
1. £250m has
been allocated to the West Midlands Combined Authority as their
share of the Transforming Cities fund, providing flexibility for
them to take decisions about the priority transport projects for
their area.
2. Further
details on the fund will be announced at the Autumn
Budget.
