UK Government Pledges £86 Billion for Science and Technology Investment by 2029

The funding package is expected to support innovation, job creation, and national security, and will be formally outlined in Chancellor Rachel Reeves’ Spending Review.

The investment aims to increase UK research capabilities in areas such as drug discovery, energy storage, and advanced manufacturing. A key component of the plan includes up to £500 million for regional development, with local leaders given a role in directing how funding is allocated to best reflect local specialisms.

The Department for Science, Innovation and Technology has stated that “every corner of the country” will benefit from the funding. Early indications of regional allocations include:

• Liverpool, where funding will support drug discovery, building on the city’s established biotech capabilities.
• Northern Ireland, which will receive funding for the development of defence equipment.
• South Wales, where investment will be directed toward the design of microchips for mobile phones and electric vehicles.

By 2029, annual investment in the science and technology sector is projected to exceed £22.5 billion.

Speaking ahead of the Spending Review, Chancellor Reeves said:

“Britain is the home of science and technology. Through the plan for change, we are investing in Britain’s renewal to create jobs, protect our security against foreign threats, and make working families better off.”

The funding forms part of a wider departmental review, which will set out both day-to-day spending and long-term capital investment plans across government. Reeves has indicated that not all departments will receive their full budget requests, citing the need to operate within strict fiscal rules.

These rules require that day-to-day spending is fully funded by tax revenue, with borrowing reserved for long-term investment.

Sector representatives have welcomed the announcement but warned that further steps are needed to secure the UK’s international reputation for research and innovation.

Tony McBride, Director of Policy and Public Affairs at the Institute of Physics, said that workforce planning would be crucial:

“This must include a plan for the skilled workforce we need to deliver this vision, starting with teachers and addressing every educational stage, to underpin the industrial strategy.”

John-Arne Røttingen, Chief Executive of Wellcome, the UK’s largest non-governmental research funder, noted that additional challenges remain, including visa costs for international scientists, financial pressures on universities, and the need to adjust budgets in line with inflation.

He said the UK should aim to lead the G7 in research intensity to deliver both economic and social benefits.

The government’s science and technology commitment is being positioned as central to the UK’s future economic strategy.