I congratulate all members of the Science and Technology Committee on their excellent report. I especially congratulate the Chair of the Committee, the hon. Member for Oxford West and Abingdon (Nicola Blackwood), who has led us through it so eloquently. The report has hit the nail on the head. As the Chair of the Committee has said, science is vital to securing Britain’s future prosperity, research and development. It not only underpins our economic position, but helps to secure our wellbeing and health, by contributing to potential medical breakthroughs in the treatment of cancer and heart disease and even in the eradication of grey hair, as my hon. Friend the Member for Stoke-on-Trent Central (Tristram Hunt) has mentioned. I was reminded of that at the event I attended yesterday, “Voice of the Future 2016”, which the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe) has mentioned. That event was an opportunity for young scientists and engineers to questions parliamentarians, and the Minister knows all about it because we were both there for the question and answer sessions towards the end of the day. It was gratifying and inspiring to hear that there is such support for science among our young people.
If only the Government were equally supportive. Unfortunately for us all, the Department for Business, Innovation and Skills, where the levers of growth in the Government are found, suffered a further 17% cut in the November spending review. Much was made of the protection of the £4.7 billion science budget until the end of the Parliament in 2020, and Ministers seemed to be especially proud of protecting the science capital budget of £1.1 billion until 2021. I was pleased to be reminded by my hon. Friend the Member for Hartlepool (Mr Wright) that some other Departments did better. For example, the Ministry of Defence, the Department for Transport and the Department for Communities and Local Government—as far as housing was concerned—secured a more favourable capital spend. However, I would be the first to concede that many in science and industry breathed a sigh of relief at that settlement; after all, I think they were expecting much worse.
The situation could have been so much better. As we have just been reminded by the hon. Member for Glasgow North West (Carol Monaghan), flat cash settlements eroded the ring-fenced, non-capital science budget by £1 billion in real terms in the previous Parliament. If we discount the introduction of the global challenges fund, which is geared to overseas development and has many strings attached, we are dealing with another flat cash settlement that will create a serious real-terms decline in funding.
The fact remains that £4.7 billion is only 0.49% of GDP, which pales in comparison with our competitor nations. The UK Government’s spending on R and D is the lowest among the G8 countries. As the Minister knows, the Royal Society has called for investment in R and D to be increased to 0.67% of GDP, to match the OECD average. The CBI has called for it to be doubled to around 1% of GDP. That is because, as the former director general of the CBI remarked last year, we are falling ever further behind our international competitors, and we must take action to ensure that we lead from the front.