Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to encourage funding from the private sector for research and development.

As set out in ‘Building Back Better: our Plan for Growth’, we are developing an Innovation Strategy, which will be published in the summer. The Strategy will consider how we can boost innovation across the UK economy to increase productivity and tackle our biggest social and economic challenges.

The Government has set out plans at Spending Review to cement the UK’s status as a global leader in science and innovation by investing £14.6 billion in R&D in 2021/22. This investment supports our commitments set out in the R&D Roadmap as we build towards UK R&D investment of 2.4% of GDP by 2027.

Leveraging investment from the private sector will be vital to reach the 2.4% target and achieve our ambitions for innovation. The Government has already set out at Budget a range of measures to boost private investment in research and development, including a review of R&D tax reliefs, supported by a consultation with stakeholders, and £375 million to introduce Future Fund: Breakthrough, a new direct co-investment product to support the scale up of the most innovative, R&D-intensive businesses. These developments will complement our existing incentives for private R&D investment.