Budget 2025 and UKRI Growth Summit: what are the key takeaways?

Two events this week saw important announcements for health and research; UK Research and Innovation’s (UKRI) Innovation for Growth Summit and the 2025 Budget delivered by chancellor Rachel Reeves.  

Taking place on Monday, the Innovation for Growth Summit was Professor Sir Ian Chapman’s first major event as the new CEO of UKRI. Both Nicola Perrin, AMRC CEO, and Louise Wood, AMRC Chair, attended. UKRI’s funding will be split into three “buckets” under headings identified in the organisation’s new mission statement “Advancing Knowledge, Improving Lives, Driving Growth”. These cover curiosity-led research, targeted research focusing on government priorities, and support for innovative companies. The remainder of UKRI’s budget will go to cross-cutting investment supporting the R&D system, including national science infrastructure and skills development. 

The overall approach was described as more interventionalist than in the past, making active choices on areas to support rather than spreading investments thinly over a large portfolio. The Science Secretary, Liz Kendall, described this as “prioritis[ing] with intent” and using R&D funding to “do fewer things, better.” She acknowledged that there will be difficult choices as part of this, and some will feel they’ve lost out.  

Curiosity-led research will be backed by ringfenced investment of £14 billion. This will be distributed by Research Councils, supporting discovery research and the future R&D pipeline. It’s not clear how this amount compares to previous years and allocations for Research Councils won’t be published until later this year. Throughout the summit, there was also a strong focus on collaboration, and we’ll continue to make the case for medical research charities as key partners. 

The Budget followed on Wednesday, and while it was light on announcements concerning research, some areas will be relevant to our members and the wider sector.  UKRI’s core quality-related (QR) grant and Higher Education Innovation Funding (HEIF) will be protected in real terms over the Spending Review period – a cumulative increase of over £425 million. QR block-funding from government can be used flexibly by universities to support their own research priorities and invest in talent and infrastructure.  

The Budget also included more details about a new levy on international student fees, which is heavily opposed by the research sector. From 2028, all higher education institutions with more than 220 international students will pay £925 per student per year of study. In terms of health and social care, the government also announced 250 new Neighbourhood Health Centres across England, which will bring together local health services such as GPs and physiotherapists, in a bid to improve access to care, and to support a more preventative and sustainable NHS. 

We’ll continue to monitor the details of these announcements. We’ve also shared a briefing with members via our Member Briefing. If you missed the mailing, please get in touch with our policy team at [email protected].