Cutting UK research funding would be ‘false economy’, Reeves told

Cutting UK research funding in the upcoming budget would be a “false economy”, science leaders have warned the government.

Universities have been spooked by suggestions that Rachel Reeves’ first budget on 30 October will deliver a flat-cash settlement for research, while also forcing the Department for Science, Innovation and Technology (DSIT) to take on the costs of the UK’s participation in Horizon Europe – estimated to stand at between £800 million and £1 billion.

In a letter to the chancellor, sector organisations warn that a settlement on these terms would force “deep cuts” across the UK research landscape.

“This month’s budget is a critical moment. We recognise that there are difficult decisions to be made with the public finances, but it is vital that our long-term ability to grow the economy isn’t undermined by the false economy of short-term cuts,” the letter says.

“Reports of a reprofiling of investment leading to additional costs in DSIT’s 2025-26 budget, with no extra financing provided to cover a shortfall, are very concerning. It would mean deep cuts across other parts of R&D investment, with significant negative consequences for the UK’s world-leading R&D sector, putting the brakes on growth and undermining confidence.

“Cutting UK R&D now would be a false economy, the sector would lose stability, lose expertise, and lose momentum.”

Signatories to the letter include Universities UK, the Russell Group, the Wellcome Trust, and the Campaign for Science and Engineering (Case).

They urge Ms Reeves to use the budget and next year’s planned spending review to “commit to continued investment in R&D and signal, at home and abroad, that the UK is serious about R&D’s role in contributing to sustained economic growth”.

Universities also fear that a 1 per cent increase in employers’ national insurance contributions, suggested as one option Ms Reeves is considering, could cost the sector an additional £130 million at a time when some institutions are already fighting for survival.

“We recognise that finances are stretched, and the government must make some difficult decisions around where money is spent. However, we are extremely concerned by the prospect of DSIT needing to absorb additional costs relating to Horizon Europe association, without additional money,” said Alicia Greated, Case’s executive director.

“To cover these costs would require deep cuts elsewhere in the R&D sector. This would lead to the loss of jobs, expertise and momentum right when the sector is needed to make a vital contribution to boosting economic growth and productivity.”

A separate letter signed by leading research-intensive companies and coordinated by the National Centre for Universities and Business tells Ms Reeves that “the emphasis must be on maintaining the sustainable foundations of the system”.

“The longevity of the investment in research means that sudden, drastic drops in funding, even if temporary, have a significant and sustained scarring effect,” says the second letter. “This is why patient investment in research in the UK must be sustained by both the public and private sector.”

chris.havergal@timeshighereducation.com