The Labour government has unveiled a record £55 billion investment in research and development (R&D), marking the largest long-term commitment to science and innovation in British history.
The announcement underscores Prime Minister Keir Starmer’s pledge to transform the UK into a “science and technology superpower” by the end of the decade.
The plan, confirmed by the Department of Science, Innovation and Technology (DSIT), will channel billions into Britain’s leading research agencies and innovation bodies through to 2030. It forms a central pillar of the government’s Modern Industrial Strategy, which aims to drive productivity, boost high-value jobs, and strengthen public-private partnerships in emerging technologies.
Announcing the package at IBM’s London headquarters, Science and Technology Secretary Liz Kendall said the funding was “absolutely critical to growing the economy and creating more good jobs”.
“Every pound of public investment in R&D generates twice as much from the private sector,” Kendall said. “This £55 billion commitment will fuel innovation in AI, clean energy and advanced manufacturing — and help solve some of the biggest challenges we face.”
The investment includes:
• £38 billion for UK Research and Innovation (UKRI), the national funding agency for science.
• £1.4 billion for the Met Office, supporting climate and meteorological research.
• £900 million for the UK’s national academies, including the Royal Society and Royal Academy of Engineering.
• A near-doubling of the Advanced Research and Invention Agency’s (ARIA) annual budget — from £220 million to £400 million by 2030 — to fund breakthrough technologies with commercial potential.
The initiative highlights the government’s focus on aligning public funding with private-sector innovation. Kendall’s visit to IBM emphasised collaboration between tech giants and British research institutions, including UKRI’s £210 million Hartree Centre, which partners with IBM on artificial intelligence and supercomputing projects in medicine and clean energy.
Recent DSIT research found that every £1 of public R&D spending generates £8 in wider economic benefits, from productivity gains to increased private investment.
“This is about good jobs, innovation, and better value for taxpayers,” Kendall told Business Matters. “There’s no route to above-average growth without putting tech and innovation first.”
The government said total R&D spending from DSIT will reach £58.5 billion by 2030, a cornerstone of Labour’s industrial and growth strategy. The announcement follows months of lobbying from business groups such as the Confederation of British Industry (CBI), which has urged ministers to set long-term R&D targets and lift national investment to 3.4 per cent of GDP by the end of the decade.
Louise Hellem, the CBI’s chief economist, called the new R&D package “a vital step towards crowding in private capital and ensuring Britain remains competitive in the global innovation race”.
As the government seeks to balance fiscal discipline with its ambition to boost growth, the record investment signals a decisive shift towards science-led economic renewal — one that positions research, technology, and innovation at the heart of the UK’s industrial future.
