As we were arriving in Parliament for our Parliamentary Reception, in the chamber nearby, the Chancellor began delivering the first Budget of the new Labour Government. This marked the first Labour Budget since 2010 and, more notably, the first time it has been delivered by a female chancellor in our history.
In next week’s newsletter we will examine the Budget in more detail, but here are the key points:
- The Government has prioritised the NHS in Phase 1 of the Spending Review, meaning resource
spending for the Department of Health and Social Care (DHSC) will increase by £22.6 billion
from 2023-24 to 2025-26. - Chancellor Rachel Reeves also unveiled a £3.1 billion increase in capital investment in 2025-26 compared to 2023-24 outturn.
- DSIT’s funding will increase 6.5% over the next two years, with total DEL funding of £15.1 billion in 2025-26. Of DSIT’s renewed budget, £13.9 billion has been assigned for R&D and £2.7 billion for association to EU research programmes, partnerships, and Horizon.
- The Government has confirmed a provision of £70 million in 2025-26 for the new Life Sciences Innovative Manufacturing Fund, as part of a longer-term funding commitment of up to £520
million. - As part of over £2 billion of R&D funding, the National Institute for Health and Care Research (NIHR) is set to receive a real terms budget uplift.
- The Government has pledged to protect R&D investment with £20.4 billion in funding, including £6.1 billion dedicated to core research areas like engineering, biotechnology, and medical science.
- The Chancellor has allocated £2.7 billion to support the UK’s association with Horizon and other EU research partnerships.
- The Industrial Strategy and life sciences sector plans will be published alongside Phase 2 of the Spending Review.
- The Chancellor announced that Government investment in R&D would be protected, with more than £13 billion of funding, including £6.1 billion of support for core research.
