The hon. Gentleman is absolutely right. Setting out the benefits beyond the inner city locations is so crucial. When it comes to dealing with the issues of science and technology, we need to demonstrate the need for smart cities that will improve congestion and public transport.
I have not yet touched on the critical need to make sure that the lives and experiences of disabled people are better met in our cities. As Universities Minister, I am really keen that inclusivity must be mainstreamed. We should not be thinking about disabled people as part of the strategies; they should be at the centre of any strategy. That is the same in a university campus as in an inner-city location or a pedestrianised zone in a shopping centre. Placing the needs of disabled people at the heart of a vision from the very beginning is also critical in the design of smart cities for the future. Any local authority should make sure that it takes those issues of inclusivity absolutely to heart.
I conclude on a point of principle. The Government are committed to spending 2.4% of GDP on research and development—both private and public spend; at the moment, roughly a third of that spend is public and two thirds private. At the moment, we spend 1.7% on research and development. Other countries such as the United States, Germany, South Korea and even China are spending vastly more than us. That allows them to make advances that we must match.
Hitting 2.4% of GDP by 2027—the Government’s target—will just take us to the OECD baseline. We have to be able to make that investment, which would mean increasing the amount we spend on research and development across the public and private sectors from about £35 billion a year to £60 billion. To do that, we must convince SMEs to change their business models and recognise the value of research and development.
For example, we set up a robotics strategy in 2013. We invested about £386 million as a Government in robotics, and we leveraged in private capital of over £1 billion as a result. We need to see how we can increase that leverage; at the moment, the private sector puts in roughly £1.40 for every pound we spend on research and development in areas such as smart cities.
In Germany, the figure is nearer £2.40 and in Israel it is about £3. We could be doing more to ensure a greater sum total pot for research and development on smart cities and the technologies that underpin them. However, we have to be able to make that initial public investment.
I have been giving a series of speeches about the road to 2.4%. First, I have covered the critical issue of people—investing in universities and future research leaders. Secondly, I have spoken about international partnerships; I am delighted that the hon. Member for East Kilbride, Strathaven and Lesmahagow took part in the delegation to the United States, setting out the new countries with which we wish to work for the future. Thirdly, I have been focusing on the new technologies such as quantum and robotics—the underpinning of smart cities and a future R&D strategy. My fourth speech on 10 July will be about how we can increase leverage and private investment for the future.
All four speeches relate to the key point of smart cities, which will happen and expand into our regions, towns and villages only if we make the investment in research and development in the longer term. We will need to spend £60 billion across the private and public sectors by 2027. We will need a catalytic moment from the public sector.
As science and technology Minister, I am also determined to ensure that we increase spend on clean and green technology for the future. The debate earlier focused on carbon capture, utilisation and storage. It is the regions that are coming up with some of the great new ideas; on Thursday, I will be going to Cheshire to look at some of the latest technology in that area. We do need to invest publicly as well as trying to increase private investment. The 2.4% figure must be a cornerstone of this Government’s and any future Government’s desire to meet the net zero target by 2050.
I am delighted that the hon. Lady secured this debate. It has highlighted some of the challenges that will lead to huge opportunities if we make that commitment to spending 2.4% on research and development. We can reach out to the whole country. Rather than research being focused in certain cities, we will be able to make sure that everyone in this country can share the proceeds of growth from research and development. We are looking at smart cities, but every town can be a smart town and every village a smart village.
Question put and agreed to.
8.9 pm
House adjourned.