October 30, 2024

expert reaction to Science and R&D elements of the Autumn Budget, as announced by the Chancellor

The Science Community comment on Science and R&D elements of the Autumn Budget, delivered by the Chancellor Rachel Reeves.

Commenting on the Tobacco Duty and the Vaping Products Duty:

Dr Sarah Jackson, Principal Research Fellow, UCL Tobacco and Alcohol Research Group, Research Department of Behavioural Science and Health, UCL, said:

“The decision to pivot from the planned duty structure, which would have taxed products containing higher nicotine strengths at higher rates, to a flat-rate duty is welcome.  This avoids discouraging vapers from using lower nicotine strengths, which may be less effective for quitting smoking or preventing relapse among ex-smokers.

“The £2.20 per 10ml duty rate will substantially increase the cost of vaping.  This will make vaping less affordable for young people and might therefore help to reduce youth vaping rates.  However, it will also make it more expensive for people to use e-cigarettes to stop smoking (although the planned tobacco tax increase means it should still be cheaper to vape than smoke).  This could undermine progress in reducing smoking, which is the much more harmful behaviour.  Unintended consequences could be greater for more disadvantaged groups who are more likely to smoke but have less money to spend.”

Prof Nicholas Hopkinson, Professor of Respiratory Medicine and Honorary Consultant Physician, National Heart and Lung Institute, Imperial College London, said:

“This is a broadly sensible approach.  We know that reducing the affordability of smoking is both one of the most important measures to encourage people who smoke to quit and also reduces the risk that young people get hooked in the first place.

“Vaping is much less harmful than smoking, so switching to e-cigarettes substantially reduces health risks.  At the same time, vaping is not completely harmless and vape devices available for pocket money prices are one of the reasons why there has been a big increase in youth vaping.

“A tax on e-liquids, while also maintaining a big price difference between smoking and vaping should cover both bases.  Switching to vaping will still save smokers money as well as improving their health.  At the same time, making vaping less affordable should help to keep e-cigarettes out of the hands of children.”

Commenting on the Hydrogen Energy announcements in the Autumn Budget:

Sally Prickett, Director, Hydrogen, Arup, said:

“We welcome the new UK government’s announcement confirming plans to invest £125 million in Great British Energy and £3.9 billion of funding in 2025/26 for Carbon Capture, Usage and Storage Track-1 projects to decarbonise industry. The Chancellor’s continued support and commitment to investing in the first round of electrolytic hydrogen projects is a positive step. However, this commitment needs to be followed by firm agreements with developers and streamlined planning to make these projects transition from conception to successful completion. Support for future hydrogen allocation rounds will also be critical to meet the UK’s stated net zero ambitions.

“Arup are working with clients to advance hydrogen projects, including 5 of those supported in the budget. We support clients through planning, engineering design and proactive stakeholder engagement. By adapting designs to address emerging challenges mitigate risks, we ensure projects are delivered on time and within budget, all while accelerating the UK’s decarbonisation journey.”

Dr Brian O’Callaghan, Lead Researcher and Project Manager, Smith School of Enterprise and the Environment, University of Oxford, said:

“Hydrogen purchase contracts provide much-needed certainty to developers and can be the green light needed to unlock debt financing to fast-track the UK’s hydrogen economy.  Just as early solar investments catalysed a half-a-billion-dollar global industry, hydrogen incentives could supercharge the UK’s progress against its industrial decarbonization goals.

“However, it is essential that commitments support the right part of the hydrogen rainbow.  Blue hydrogen, produced from natural gas, is generally an environmental non-starter.

“Net zero for industry hinges on real carbon capture and permanent storage.  The UK has trailed behind US incentives for robust carbon capture, but this policy could be a signal we’re catching up, pushing Britain closer to industrial decarbonization.  To reach that goal, investment should target CCUS for existing industrial emissions streams and certainly not for new fossil fuel facilities.”

Dr Robert Sansom, member of the Institution of Engineering and Technology’s Sustainability and Net Zero Policy Centre, said:

“Carbon Capture and Storage (CCS) is going to be a vital tool in hitting the UK’s Net Zero targets and the UK has the potential to take a lead in it. This investment is a step in the right direction, but it must be met with a holistic approach that delivers the skills needed to grow the CCS sector. CCS should be seen as supporting the transition to Net Zero until alternatives can be found to address the hard to decarbonise sectors. There have been concerns raised over methane leakage but the UK along with Norway (where most of our gas imports come from) is well advanced in reducing this to very low levels. Growing the UK’s CCS capacity will further embolden this, but we must ensure that enduring imports from other areas meet comparable levels.

“For hydrogen, this has not been deployed at scale anywhere in the world and so any projects will need to compensate for this. It’s vital we gain commercial scale experience of this technology, which is critical to our commitment to delivering net zero. Electrolysis hydrogen in particular is less suited for producing large volumes and costs are currently higher, so this will need to be considered.”

Prof Sara Walker, Director, Birmingham Energy Institute, University of Birmingham, said:

“We know that there are sectors and geographies of the UK which are hard to decarbonise, and that electrification is not always the best option. By taking a whole energy systems approach, our research in HI-ACT can enable us to better understand the interactions that will occur between electrolytic hydrogen projects and the electricity system, renewable energy generation, hydrogen storage, and water demand. We are investigating the South Wales Industrial Cluster as a use case for hydrogen, and we look forward to engaging with these newly announced projects as our research progresses.”

James Bamborough, Sustainability and Net Zero Policy Manager at the Institution of Engineering and Technology (IET), said:

“The Government’s commitment to 11 new green hydrogen plants will support their goal of making Britain a clean energy superpower. However, transitioning to hydrogen will require a range of technical skills in addition to academic and industrial researchers though to project management and customer-facing skills. The deployment of green hydrogen must be part of a holistic approach to the energy transition and the £6.1bn support for core research funding in engineering will help nurture groundbreaking technologies and innovation in the energy sector.”

Commenting on R&D elements of the Autumn Budget more generally:

Professor Gurdyal Besra FRS, President of the Microbiology Society, said:

“Yesterday’s budget announcement, with its commitment to safeguarding core research funding, is highly encouraging. The UK’s research sector is a global leader, consistently delivering groundbreaking innovations that enhance our understanding of the world and transform our lives. We are pleased that the government acknowledges the critical importance of R&D and the UK’s exceptional strengths in research and innovation. We look forward to collaborating with them to build on these efforts.”

Dr Daniel Rathbone, Deputy Executive Director, Campaign for Science and Engineering (CaSE):

“Following further analysis and conversations, we understand that, based on the increase to the DSIT R&D budget, the worst case of a significant cut to other R&D investment following a ‘tuck under’ of Horizon Europe association costs will not materialise.

“This is good news for the R&D sector, and fantastic result for our advocacy efforts over recent weeks.  However, we won’t know the full picture until we get sight of the complete DSIT spending allocations in the coming months.”

Dr Andrew Garrett, President, Royal Statistical Society, said:

“It is welcome news that headline R&D commitments continue as planned at £20 billion, or so, for 2025.  This reflects the new Chancellor’s recognition that wise R&D spend enables economic growth and leads to well paid jobs in the UK.  A recent report [1] by the Academy for the Mathematical Sciences estimates that the mathematical sciences contributed £495 billion to the UK economy in 2023 with productivity in associated jobs being 58% higher than the average and with mean average salaries 24% higher than average.

“It is also welcome news that the Chancellor has aspirations for the UK to become a clean energy superpower with targeted regional investment across the UK in carbon capture and green hydrogen.  It is important that the UK shows leadership on climate change – in terms of the research and associated investment in solutions to reduce our carbon emissions.

“The previously announced National Data Library gets a small mention in the budget but little detail is provided around access to public data assets.  The RSS keenly awaits more detail around the Government’s plans for investment in the UK’s data infrastructure including details around enhanced data sharing to support research and business.”

1 New analysis shows that mathematical sciences supercharges UK economic growth – Academy for the Mathematical Sciences: https://www.acadmathsci.org.uk/2024/10/22/new-analysis-shows-that-mathematical-sciences-supercharges-uk-economic-growth/

Professor Andrew Morris CBE PMedSci, President of the Academy of Medical Sciences, said:

“With this Budget, we are pleased that the Government has recognised the pivotal role of research and innovation in powering economic growth and prosperity. The Academy will continue to support this by working with our partners to deliver the best possible outcomes for research and for the health of people everywhere.

“It is encouraging that the Chancellor is providing much-needed stability for our research community by protecting core R&D budgets and we particularly welcome the real-terms increase in National Institute for Health Research investments, which are an important step towards delivering health research and innovations for patients across the UK.

“The Government’s commitment to fully cover the cost of the Horizon Europe programme is essential for advancing medical science and addressing global health challenges across borders and we encourage the UK research community to actively pursue these funding opportunities.

“By recognising innovation as one of the seven pillars of its Growth Mission, alongside the commitment to establish 10-year budgets in the Spring Statement and a roadmap to rebuild the NHS, the Government is signalling an important shift to longer-term thinking. Stable, sustained funding is crucial for fostering productive partnerships between academia, industry and the NHS, and enabling the kind of transformative research that improves the lives of people across the UK.” 

Beth Thompson, Chief Strategy Officer at Wellcome, said:

“We welcome the Chancellor’s support for the role of research and development (R&D), and the underlining of the importance of science as a driver for growth and to improve health. Protecting R&D spending, even when times are tough, is the right thing to do.

“As the chancellor stated in her speech, the way to drive economic growth is to invest. This is particularly true for R&D – every pound of public support stimulates over £4 of private investment. Creating this cycle of long-term, strategic and ambitious investment means businesses and universities can continue to flourish, cementing the UK’s reputation for science, and making new discoveries that transform physical and mental health in the UK and around the world.

“We recognise that this has been a budget of trade-offs with tricky decisions to be made. However, the reduction of the proportion of national income spent on official development assistance is concerning and will diminish the UK’s leadership to tackle the urgent global health challenges the whole world faces, including infectious diseases and the effects of climate change.”

David Hawkes, Interim Associate Director of Policy, Institution of Civil Engineers, said:

“The Chancellor’s approach to infrastructure investment as spending that delivers economic, social, and environmental value for the country, versus just being a cost, is welcome. It’s something the ICE has repeatedly called for.

“Other positive measures include modelling the Budget’s impact for 10 years instead of five. Long-term thinking is key to the country achieving its goals. It’s also good to see the government highlight the need for private investment and that it will support regional leaders to drive growth in their areas.

“Now the question is, will the investment announced today be enough for the UK to meet its economic, social, and environmental objectives?

“In its forthcoming 10-year infrastructure strategy, the government must must present a vision for infrastructure investment, including how projects will be prioritised. Ahead of that, it must also clarify how the new National Infrastructure and Service Transformation Authority (NISTA) will improve delivery.”

Claire Sharpe, Deputy Chief Executive of IPEM, said:

“In our manifesto for the future of Medical Physics and Clinical Engineering, published before the election, IPEM specifically called for investment in vital life saving equipment like scanners and linear accelerators and it is great to see the Government heeding that call. Investing for the long term now is not only good for patients in terms of reducing waiting times for diagnosis and treatment, but will also provide the NHS with the latest, cutting edge technology.

“However, these machines need highly trained experts in Medical Physics and Clinical Engineering to operate and maintain them safely, effectively and efficiently.

“It’s vital therefore, that the Government addresses the workforce crisis in Medical Physics and Clinical Engineering by investing in more trained MPCE staff and more training places, including wider access to apprenticeships and improving the provision of education in STEM subjects. This includes recruiting more physics teachers in schools.”

Tom Grinyer, Chief Executive of the IOP, said: 

On research and development: “We were pleased to hear the Chancellor talk about protecting research and development funding and reiterating the role of science and innovation in driving long-term growth in today’s Budget but would welcome clarity about what this will mean for research and innovation programmes and budgets, including Horizon funding.

“Having the clearest possible picture and safeguarding funding will help the UK’s R&D and Higher Education community to work with Government on unlocking the transformative power of our science and innovation base through the Spring Spending Review and Industrial Strategy.”

On school teachers: “It is also welcome to see the commitment to recruitment of 6,500 additional teachers in priority areas. There is a desperate need for more physics teachers with a shortage of around 3,500 across England.

“Given physics has witnessed some of the worst year-on-year teacher shortfalls of any subjects, we now need the government to be clear how many of these  will be physics teachers and how this will be achieved.”

Prof Bryan Williams, Chief Scientific and Medical Officer at the British Heart Foundation, said:

“It is positive that the Chancellor has promised to protect research & development funding. Today’s Budget recognised the value of R&D to the UK economy and the crucial role it will play in helping it to achieve Government’s growth ambitions.

“However, without a true uplift to R&D funding, future breakthroughs are at risk. Cardiovascular disease research is already funded far below its impact on individuals and society. We will be seeking clarity on what today’s statement means for cardiovascular disease research and the UK’s science landscape.”

Sir Adrian Smith, President of the Royal Society, said: 

“It is very good news for the science sector and for the UK that the Chancellor has recognised research and innovation as a ‘crucial national asset’ for delivering long-term economic growth.

“Protecting the science budget, despite the challenges facing public finances, and investing £20.4bn in 2025/26, will create conditions that generate new knowledge, boost productivity and unlock opportunities for every corner of the UK.

“There is clear recognition that delivery of net zero and support for innovation in growth sectors, like AI, will be key to capturing these economic opportunities.

“The Chancellor rightly recognises that investing in education and skills today lays the foundation for the UK’s future prosperity and international competitiveness. Recruitment of specialist science teachers and reform of mathematical education as part of the upcoming curriculum review will be key to delivering this pledge.”

Steve Bates CEO of the UK Bioindustry Association, said:

“Today’s Budget rightly puts the life science sector at the heart of UK economic growth. In a tough fiscal environment Chancellor Rachel Reeves recommitted to R+D tax credits at current rates for this parliament. It’s great to see the £520 million life science manufacturing fund had its website open for business within an hour of the statement. Equally importantly is the commitment to protect core research funding for biotechnology and medical science. With the creation of the National Wealth Fund and Emma Reynold’s Pensions Review now underway, we will work in partnership with government to crowd further investment into this key growth sector in the coming months.”

Richard Torbett, Chief Executive of the ABPI said:

“Despite the tough fiscal environment, today’s Budget is a clear indication that the government sees life sciences at the heart of its growth mission.

“Confirmation of the life sciences innovative manufacturing fund is very welcome, and will be crucial in helping to capture high-productivity investment, and create valuable jobs at a time when they are most needed.

“The increased investment in the health service and commitments to put technology and innovation at the heart of the NHS are key to delivering an ambitious 10-Year Plan.  Innovative medicines will be a vital part of delivering the shifts the Health Secretary is trying to achieve.

“Thanks to an agreement between our industry and government which caps the branded medicines bill, the NHS can invest in new medicines with full confidence that medicine spend will remain firmly under control.

“The research and development of new medicines and vaccines is a powerful contributor to economic growth. In the UK, the pharmaceutical industry is the largest private sector investor in UK R&D, and the key attractions underpinning that investment are our strong science base and the NHS.

“Increasing funding for the National Institute for Health and Care Research (NIHR) will help the government improve the environment to deliver clinical trials. We look forward to working with the government to boost our research health and life sciences ecosystem further.”

Chi Onwurah, Chair of the Science, Innovation and Technology Committee, said:

“Sustained investment in science, innovation and technology is needed to drive the UK’s economic growth and productivity. When the Government was elected in July, it committed to supporting innovation as part of its mission driven approach.  

“It’s vital that UK R&D gets long-term funding to keep up the momentum and level of expertise needed to drive our future prosperity. I welcome the commitment to protect core research funding, as well as the specific investments planned for R&D in high-tech industries like aerospace, automotive, and clean energy. 

“The Committee looks forward to scrutinising the Budget in detail. We’ll be examining how the Budget will impact science and technology, and hearing views from across the sector and industry.” 

Dr Alicia Greated, Executive Director, Campaign for Science and Engineering (CaSE), said:

“I am pleased to hear such positive support for UK R&D and innovation from the Chancellor, and recognition that, if supported, it will drive economic growth. We also know the public care about this, with 70% of people saying it is important for the Government to invest in R&D. Seeing this reflected by Government is unequivocally a good thing.

“Beyond the positive intent, it is the detail we must now turn to. It is reassuring to hear pledges to protect core R&D funding and to increase DSIT’s R&D budget, but it will take time to unpack and understand what this means in practice. We look forward to receiving more detail about DSIT’s budget allocations to enable us to build a fuller picture of the changes announced.”

Professor Dame Ottoline Leyser, Chief Executive, UK Research & Innovation, said:

“We welcome the Government’s continued commitment to research and innovation in today’s Budget, recognising their crucial role in driving sustainable economic growth, creating jobs, and improving public services for people across the UK.

“We appreciate the Chancellor’s prioritisation of research and innovation, given the difficult choices to be made on public expenditure. We will work closely with the Secretary of State, Science Minister, across government and with our research and innovation partners to maximise the impact of our investments and create a strong platform for an ambitious programme of research and innovation in the multi-year Spending Review next Spring.”

Dr John Lazar CBE FREng, President of the Royal Academy of Engineering, says:

“The Chancellor’s first budget was a difficult balancing act, and we are pleased to see a long-term commitment to research and innovation, which is proven to help business, productivity and growth. We know the pressures on public finances that put government spending on research and development in the spotlight, and also that R&D spending is the catalyst for economic success. We welcome the commitment to protect government investment in R&D, and the acknowledgement of the key role that the UK’s National Academies play in driving innovation in engineering, biotechnology and medical science. It is now up to the Science, Engineering and Technology sector to work with the government to deliver the innovation and growth needed to unlock investment and create jobs.”

“With sustained investment in innovation and entrepreneurship, the UK is well placed to leverage its impressive engineering and technology strengths to sustain business confidence, catalyse investment and power growth, and ultimately improve our public services and productivity.”

“The economy can only grow if the infrastructure that underpins it keeps pace with its needs – we welcome the £100bn additional investment over the next five years to fund public infrastructure, and the boost this will give to UK capabilities and regional development.”

On the NHS funding announcements in the Budget, Director of Evidence and Implementation at Cancer Research UK, Naser Turabi, said:

“The fact that the NHS has received additional funding in today’s budget for day to day spending and investment is good news. It’s no secret that our health service is struggling, and record numbers of cancer patients are having to wait longer than they should to begin their treatment. Funding, coupled with reform, will be vital to bringing waiting lists down. 

“But the new government will only be able to turn things around with effective planning and sustained funding. The development of a long-term health plan is promising, but it’s vital that we see a dedicated cancer strategy alongside this. Other countries like Denmark have proven that they can help save lives, and transforming outcomes for cancer patients will go a long way towards fixing the NHS in England as a whole.”

On the research funding announcements in the Budget, Director of Policy at Cancer Research UK, Dr Owen Jackson, said:

“It is good news that the Chancellor has committed to protecting R&D funding in this Budget. A strong R&D system is essential to prosperity of the UK and health of the nation. 

“The UK is unusual in that nearly two thirds of non-commercial cancer research is funded by charities like Cancer Research UK. We will continue to work in partnership with government and the private sector to build on the UK’s strengths in life sciences and cancer research, and to advocate for increased funding for these vital areas over the coming years. Continued partnership relies on sustained investment in research over the long term.”

Sharon Todd, CEO of UK-based Innovation Network SCI, said: 

“R&D relief being maintained won’t turn the UK into a science superpower – only a material increase will help a sector that is so vital to scaling up and economic growth.

“Whilst it would be nice to think that industry would mushroom out of the ground and create value for the UK through the development of new medicines, fuels and technologies, that is not going to happen without greater support for research, development and commercialisation. Global competition means even start-up companies innovating products and ideas for our sustainable future are leaving for overseas. 

“The opportunity is now. A strategy for industry is one thing, but with huge tax incentives in Europe and the US, the UK is set to miss out on the 240,000 extra jobs and $230 billion of added value the clean tech and life sciences revolutions could otherwise bring the UK in the next five years.”

Declared interests

Dr Sarah Jackson: “No COIs.”

Prof Sara Walker: “Our Strategic Advisory Board includes members from National Gas, National Energy System Operator, Ceres, High Value Manufacturing Catapult, Hydrogen Energy Association, SP Energy Networks, National Physical Laboratory, Siemens, National Nuclear Laboratory, Health and Safety Executive. Other members are academics, and representatives from Department for Transport and Department of Energy Security and Net Zero.”

“We are not funded directly by these companies listed above.”

James Bamborough: “No conflicts of interest”

Prof Nicholas Hopkinson: “Chair, Action on Smoking and Health ASH(UK).

Professor of Respiratory Medicine and Hon Consultant Physician;

National Heart and Lung Institute, Imperial College;

Royal Brompton Hospital Campus.”

Dr Robert Sansom: “No conflicts of interest.”

Dr Brian O’Callaghan: “Brian O’Callaghan is an investor in US energy infrastructure in his role as Vice President, Acadia Infrastructure Capital.  Brian also advises governments on their energy and sustainability investments.  In his capacity at the Smith School of Enterprise and Environment, University of Oxford, Brian’s research programs currently or have previously received funding from entities that aim to accelerate the climate transition, e.g. Green Fiscal Policy Network, Children’s Investment Fund Foundation, ClimateWorks Foundation, Downforce Trust; full info here: https://recovery.smithschool.ox.ac.uk/sponsors/#:~:text=Our%20Sponsors,dialogue%20on%20green%20fiscal%20policies.” 

Sally Prickett: “There is nothing to declare apart from the fact we have and do receive funding from DESNZ regarding certain projects .. rather than industry.”

For all other experts, the nature of this story means everyone quoted above could be perceived to have a stake in it. As such, our policy is not to ask for interests to be declared – instead, they are implicit in each person’s affiliation