UK Government Announces Record £20.4 Billion R&D Investment to Drive Innovation

By Anushka Malhotra

1 minute 36 seconds

Investment

Share:

Quick Read: The UK government’s record £20.4 billion R&D investment, announced in the Autumn Budget, aims to drive innovation, economic growth, and job creation, with a focus on life sciences, regional innovation hubs, and digital infrastructure.

In its latest Autumn Budget, the UK government has unveiled a historic £20.4 billion investment in research and development (R&D) aimed at accelerating innovation and securing the nation’s status as a global leader in science and technology. This landmark funding, the largest R&D investment in UK history, underscores a national focus on fostering economic growth through technological advancements.

A key part of this investment is the UK’s full participation in Horizon Europe, the EU’s flagship research and collaboration program. By maintaining involvement in this initiative, UK researchers will have access to over £80 billion in research funding and opportunities for extensive cross-border scientific partnerships.

The budget also prioritises life sciences, allocating £520 million to the Life Sciences Innovative Manufacturing Fund (LSIMF). Expected to attract £1.8 billion in private investment, this fund aims to support high-skilled jobs and enhance the UK’s production capacity for essential medicines, boosting health resilience and preparedness for future health crises.

Innovation Accelerator and R&D Missions

As part of a regional development strategy, the Innovation Accelerator program has been renewed, focusing on high-potential innovation hubs in Greater Manchester, the Glasgow City Region, and the West Midlands. These clusters aim to advance sectors like clean tech and advanced manufacturing to bolster local economies.

Additionally, the government has launched the R&D Missions Programme with an initial £25 million investment to fund breakthrough projects aligned with national goals, such as healthcare innovation and the green energy transition. This initiative aims to turn scientific discoveries into real-world solutions that drive economic impact.

Boosting Early-Stage Innovation and Digital Infrastructure

To support early-stage research, the budget includes a £40 million Proof of Concept Fund aimed at helping UK universities and researchers bring innovations to market. This fund will promote high-growth start-ups, boosting regional development and job creation.

Investments in digital infrastructure include £500 million for Project Gigabit, which will expand high-speed internet in underserved regions, and £80 million to improve shared services across government departments, enhancing efficiency and value for taxpayers.

This comprehensive R&D funding package highlights the government’s dedication to science and technology as foundational to the UK’s economic future. From life sciences to digital infrastructure, these investments promise to strengthen the UK’s competitive edge in global innovation and address key challenges in healthcare, digital access, and regional economic growth.

What's new

West Midlands Health Tech Innovation Accelerator Unlocks Nearly £50M in Private Investment

The West Midlands Health Tech Innovation Accelerator (WMHTIA), led by the University of Birmingham, has generated an impressive £49.4 million in private co-investment within its first two years, significantly surpassing its original £14.5 million public funding allocation.

Funded through the Innovation Accelerator programme, coordinated by Innovate UK, the Department for Science, Innovation and Technology, and UK Research and Innovation, WMHTIA has become a leading force in advancing health technology innovation across the region.

The majority of the private investment—£36.3 million—was directly committed by investors to enterprises supported by the Accelerator. This achievement represents a threefold return on the initial public investment, demonstrating the strong investor confidence in the region’s health tech sector.

Powering Health Innovation Through Collaboration

The WMHTIA brings together 21 partners from academia, industry, and the NHS to help healthtech companies develop, validate, and commercialise cutting-edge medical technologies. So far, companies supported through the programme have also secured an additional £10 million in national public grants from agencies including NIHR, Eureka, and Innovate UK.

Including both public and private contributions, the total investment leveraged by WMHTIA now stands at £67.3 million.

Professor Adam Tickell, Vice-Chancellor, University of Birmingham:

We’re proud to support startups through the riskiest stages of innovation so more life-saving technologies reach patients. This exceptional investment proves what’s possible when academia, the NHS, and industry work together to drive economic growth and better health outcomes.

In March 2025, the Innovation Accelerator programme was extended with a further £30 million, including £4 million for the WMHTIA to continue supporting the region’s innovators in 2025/26.

Backing the Future of Health Tech

Richard Parker, Mayor of the West Midlands:

The West Midlands is leading medical tech innovation—from faster diagnoses to shorter hospital stays. Healthtech isn’t just improving lives; it’s creating secure, high-value jobs that drive inclusive growth.

Dean Cook, Executive Director of Place and Global, Innovate UK:

This programme shows how place-based innovation can unlock greater business investment in R&D. By connecting the region’s strengths, we’re creating high-value jobs and building globally significant innovation capability.

The WMHTIA continues to strengthen the region’s reputation as a national hub for health technology, with far-reaching benefits for patient care, job creation, and regional economic development.

By Anushka Malhotra

24 Jun