**UK Science Sector Celebrates Historic R&D Investment, Yet Universities Raise Concerns About Funding Deficiencies in Autumn Budget**
The UK’s science and research sector has praised the newly elected Labour government’s 2024 Autumn Budget for its unwavering dedication to enhancing research and development (R&D) funding, even amidst increasing financial constraints. Nevertheless, despite this positive momentum for scientific pursuits, higher education institutions are raising alarms regarding inadequate funding directed towards the university sector, worsened by escalating financial obstacles.
### Research Funding Protected Despite Economic Pressures
In her inaugural budget since assuming office, Chancellor Rachel Reeves revealed plans to provide ongoing backing for research and innovation. The budget details a significant hike in the UK’s R&D budget, pledging to uphold an average annual real-terms growth rate of 6.5% over the forthcoming two years. The Department for Science, Innovation and Technology’s annual R&D investment is projected to elevate to £13.9 billion by 2026, including £6.1 billion allocated for essential research initiatives. Moreover, £2.7 billion has been designated to support the UK’s ongoing participation in European Union (EU) research programs, such as Horizon Europe.
Adrian Smith, president of the esteemed Royal Society, hailed the commitment to R&D funding as “excellent news” for the UK’s goal to establish itself as a global leader in science. In response to the budget announcement, Smith remarked that maintaining such extraordinary investments would stimulate economic recovery, encourage innovation, and “unlock possibilities for every region of the UK.”
This perspective was mirrored by Tim Bradshaw, chief executive of the Russell Group, which represents 24 of the nation’s top research-focused universities. Bradshaw expressed gratification that the government had protected the R&D budget from cuts amid economic woes. “We especially appreciate the announcement of a multi-year R&D missions programme, which underscores the significance of R&D in fulfilling the government’s foremost objectives, including the industrial strategy,” he noted.
### Universities Confront Difficult Decisions
However, while the research funding has been secured, many in the higher education realm are dissatisfied with other components of the budget, particularly the lack of necessary financial aid for universities.
Institutions are already contending with various financial pressures—a situation worsened by two developments in the budget. Firstly, the rise in employer national insurance contributions from 13.8% to 15%, along with a decrease in the threshold for employer payments, will elevate costs for universities. This adjustment is anticipated to result in an additional £372 million in wage-linked expenses, as noted by Raj Jethwa, chief executive of the Universities and Colleges Employers Association (UCEA).
“This follows significant increases in employer pension contributions for institutions within the Teachers’ Pension Scheme earlier this year, along with declining student enrollment and stagnant tuition fee revenues,” Jethwa commented. He cautioned that universities across the nation would now face “challenging choices” about how to balance their finances due to these funding inadequacies.
With tuition income remaining unchanged—universities in England have predominantly relied on a £9,250 per year undergraduate tuition fee cap for the last five years—many institutions are finding it difficult to cope with inflation-influenced operating expenses. Decreasing student enrollment in critical subject areas has added to the pressure.
Jo Grady, general secretary of the University and College Union (UCU), did not hold back her disappointment, labeling the budget’s support for the university sector as “meager” at a time when institutions “are desperately asking for additional public funding.” She stressed that universities play a vital role in the economy’s future and cautioned that insufficient support could have significant repercussions for the sector’s viability.
“This is not merely an expression of concern: a well-funded higher education sector is a cornerstone of economic expansion,” added Grady.
### Schools and Green Technology Receive Modest Assistance
Beyond universities, other segments of the education sphere experienced slight funding boosts. The Department for Education’s budget will increase by £11.2 billion by 2026, with £2.3 billion specifically allocated to schools. This initiative is intended to facilitate the hiring of 6,500 additional teachers, addressing chronic teacher shortages that have affected the field, especially in STEM subjects like chemistry, physics, and mathematics.
Annette Farrell, education policy manager at the Royal Society of Chemistry (RSC), commended the budget’s attention to schools, particularly the rise in funding for teacher recruitment. However, she pointed out that many specific details regarding the implementation of the proposed teacher recruitment and retention strategy remain ambiguous. “We still await more clarity on how the government plans to fulfill this manifesto commitment and how it will aid in resolving the ongoing recruitment and retention crisis,” she stated.
Furthermore, Farrell emphasized that tackling the primary challenge—addressing shortages in subjects such as chemistry—will necessitate more focused strategies.
The Autumn Budget also allocated £3.9 billion for carbon