I agree that the output is good, but surely that makes the case for more investment in the science budget, not less.
As the Select Committee pointed out, the UK has fallen behind its competitors in total R and D investment. If that trend is not reversed, it will put UK competitiveness, productivity and high-value jobs at risk. The Committee recommended increasing public and private R and D investment to 3% of GDP. The current position is about 1.6% of GDP. We have heard about how much less we spend than our competitor nations, and we have a serious problem of underfunding.
My hon. Friend the Member for Hartlepool and the hon. Members for Oxford West and Abingdon and for Bolton West (Chris Green) have all cited compelling figures. As they have mentioned, there is much value in using public funding to leverage private money and increase productivity, so why not commit to more funding and lever more from private industry? We are not seeing the level of industry funding for R and D that we need. I welcome the comments by the hon. Member for Oxford West and Abingdon and my hon. Friend the Member for Hartlepool on scaling up investment, not just start-up investment.
In their response to the Committee’s report, the Government mention Innovate UK and the catapult network, which aims to strengthen R and D capacity and encourage innovation. I commend them for that development. As we have heard, however, £165 million of UK grants to Innovate UK for turning scientific research into commercial applications have been axed and replaced by loans. That creates additional risks for researchers and is liable to damage innovation. Both the CBI and the Federation of Small Businesses have raised concerns. I repeat the call that has been made: on what evidence has this decision been based? Do the Government believe that turning grants into loans will benefit innovation and encourage companies to invest?
On the subject of the catapult network, why does the north of England do so badly when it comes to Innovate UK funding? The north-west did not have a single catapult project until late last year, while Yorkshire and the Humber gets about 5% of total funding. How can that be right when the south-east gets 52% of it? As several hon. Members have said, what we need from the Government is a proper road map to outline where are we are going with research and development. Let me add that any road needs to go to the north, not just stop at the M25. It is unclear what the Government are trying to achieve in the long run. What is their plan? Can they see the wisdom of increasing R and D funding as a proportion of GDP to something approaching that of our competitors? Nowhere in their response to the Committee’s report is that made clear.
As hon. Members have said, we have a lot to be proud of in this country. The UK is very good at research—we have heard many of the figures—and we in fact gain hugely in that regard from our membership of the EU, as my hon. Friend the Member for Stoke-on-Trent Central said so eloquently. Scientific development and innovation are critically dependent on collaborative ideas and contributions. The EU helps universities to pursue cutting-edge research. It also makes working across borders easier for UK and European researchers pooling their knowledge, infrastructure, data and resources. In fact, the UK does disproportionately well in securing EU funding. During the last period, we received €8.8 billion in direct EU funding.
We also need to ensure that the UK Government are fully behind the science research project. Flat cash settlements for R and D do not help; nor do Cabinet Office missives suggesting that scientists in receipt of Government grants should not try to influence policy. Whatever happened to the idea of evidence-based policy making? The muzzling of some of our finest minds will not help. Above all, we need a Government who have a sense of the future potential of science funding. That is why everyone has talked about the need for a road map, which is the most important missing element. Unless we have a sense of where we are going, we will fall further and further behind our competitors, instead of reaching for the stars like Major Tim Peake.
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