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Question for Department for Business, Energy and Industrial Strategy

UIN 77450, tabled on 18 November 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to (a) increase overall R&D intensity, (b) meet the R&D spending target of £22 billion per year by 2026-27 and (c) obtain private investment to contribute to the target of 2.4 per cent of GDP spent on R&D by 2027.

This answer is the replacement for a previous holding answer.

Answered on

24 November 2021

The government is providing the fastest ever sustained uplift in R&D funding, reaching £20bn per annum by the end of the SR period – £5bn more than 2021/22.

The significant rise in public R&D spending to £20bn by 2024/25, with a clear commitment to £22bn by 2026/27, provides a firm foundation for us to reach the target, but we cannot achieve it alone: it is only by working with innovative businesses and funders from the private sector that we will reach 2.4%. The government is doing its bit to reach the target, with record levels of public sector investment and a generous R&D tax credits scheme. Total government support for R&D (expenditure and R&D tax credits) is forecast to rise from 0.7% of GDP in 2018 to 1.1% in 2024-25, which is well above the latest OECD average of 0.7%.

We have set out our approach to attract increased private investment, for example in the R&D Roadmap last year and in the Innovation Strategy this year.

Named day
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