My Lords, I declare my interests as set out in the register. I am pleased to have the opportunity to consider this report, which sets out so succinctly the issues that need to be addressed to sustain the UK’s international excellence in research. I would be remiss not to compliment the committee on the clarity of the report, which starkly highlights the dilemma facing our universities in delivering the success of the UK’s research base.
It has taken some time to get here, as other noble Lords have said—the report was published in August last year—but given what has happened in the interim, this is an opportune moment to seek to influence the Government’s thinking in advance of the spending review in a couple of months’ time. I pay tribute to the determination of the committee’s chair, the noble Lord, Lord Patel, in pressing for time for this debate.
The report makes it clear that the UK is home to some of the world’s most respected researchers and that our universities are recognised globally as some of the best places to conduct scientific research. In 2017, the Government recognised this in their industrial strategy White Paper by setting a target of investing 2.4% of GDP in research and development by 2027—a big ask.
The report helpfully reminds us that 62% of research in UK HEIs is publicly funded. It also reminds us that this publicly funded research is, in fact, underfunded and cross-subsidised by the entrepreneurial success of each university, including the recruitment of international students. The financial and social consequences of Covid-19 have hit universities hard and some of these sources have dried up. The Government have promised to increase spending on research in the UK. The package recently announced by the Government is a response in part to the decline in international students.
The overall decline is not yet clear, but can the Minister assure us that the 80% support offered will be sufficient to fill the gap?
In setting the conditions for the distribution of the package, will the Government ensure flexibility so that universities can allocate funds where they think best, in line with local needs and an institution’s priorities? I echo the comments of the noble Lord, Lord Willetts, on the breadth of research in our universities. I urge the Government to boost collaboration with local partners, such as local government, local businesses and public services, in which so many of our universities excel.
A major issue highlighted by the report is the need to address the falling full economic cost return on research. I echo others in asking the Minister what steps the Government will take to improve the financial resilience of university-based research and innovation activities. Will they assist in persuading funders to increase the contribution they make to the cost of research? What plans do they have to halt the outflow of research talent as universities are forced to end research projects? How will the Government help to address the loss of early career researchers, who are so fundamental to maintaining the stream of long-term research?
I will make one final point on the future of our links with the European Research Council, in particular its funding for discovery research, which is so important for furthering the UK’s status as a science and technology superpower. Access to the ERC requires full association, as opposed to third-country status, so the current apparent impasse on the wider negotiations is worrying. I realise that the negotiations about full association with Horizon Europe are separate from the UK’s wider negotiations, but can the Minister assure the Committee that our negotiators will seek to ensure that the wider challenges with the UK-EU negotiations will not lead to tensions that might endanger our access to the ERC?
Research and innovation are essential to diversify our economy and drive growth and productivity. Now more than ever, could be Government forgive themselves if they did not heed the clear messages in this report?
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