UK Research and Innovation (UKRI) has been handed a near £39 billion budget for the next four years, with its new leader promising to “transform” the organisation so it can better deliver on government’s priorities.

On 30 October, The Department for Science, Innovation and Technology outlined how it will be allocating most of the £58.5 billion research and development budget handed to it in the spending review earlier this year.

UKRI will receive an above inflation increase of 4.6 per cent to £9.2 billion in 2026-27, with its budget set to rise incrementally over the decade to close to £10 billion by 2029-30.

The budget for the Advanced Research and Invention Agency (Aria) – intended to fund “high risk, high reward” research – will almost double from £220 million a year to £400 million a year by 2029-2030. 

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The department said that the long-term allocations “give visibility and clarity on the development of DSIT’s plans for R&D budgets”.

Chancellor Rachel Reeves’ decision to uplift the R&D budget in the June spending review allayed fears that money for research could be squeezed as the government seeks to fill “black holes” in the public finances.

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But there are still concerns that the funding for “blue sky” research is facing a real-terms cut as the government becomes more prescriptive on how it wants the money spent.

In a document released alongside the allocations, the department said that “protecting curiosity-driven, foundational science” was one of its main priorities for R&D funding but it was also “taking a new approach to managing its R&D funding in a more agile way”.

This will allow it to deprioritise investment that was not “delivering the outcomes expected” and double down on investments or new discoveries “which will drive growth or deliver impact”.

Promising a more detailed breakdown of the budget in December, it says that the overall increase in UKRI’s allocation “will support the higher education sector and industry and drive the UK’s economic growth”.

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The new chief executive of UKRI, Ian Chapman, has said he wants to see universities do fewer things in research but do them really well, arguing that a “more strategic” approach was needed.

DSIT confirmed Chapman “will be overseeing a transformation of UKRI focused on improving its accountability, leadership and governance, and organisational effectiveness and efficiency, to ensure it is set up to deliver its allocation in line with the government’s R&D priorities”.

Science and technology secretary Liz Kendall said that “backing our best and brightest researchers and innovators is essential” because “their ideas will create tomorrow’s industries, boosting growth and transforming public services now and in the future.”

Responding to the announcement, Universities UK chief executive Vivienne Stern said it was “great to see the government commit to driving long-term growth by investing in research and development – one of the UK’s greatest strengths”.  

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“From medicine to innovative new tech, university research improves our everyday lives, helps us remain globally competitive and ensures we are prepared to respond to future challenges,” Stern added.

“With universities spread across the length and breadth of the UK, this funding is an investment in the local businesses and communities who will benefit too, with new analysis showing that every £1 spent on R&D gives back £8 in net economic benefits.”

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tom.williams@timeshighereducation.com