March 3, 2021

expert reaction to the 2021 Spring Budget

The Chancellor Rishi Sunak has today announced the Spring Budget for 2021.

On science in general:

Prof Dame Anne Glover FRS, President, Royal Society of Edinburgh, said:

“The Royal Society of Edinburgh (RSE), as Scotland’s National Academy, has continued to highlight the need for Scotland’s universities, research institutes and businesses to be able to recruit and retain internationally mobile talent to work and study in our academic and industrial organisations. It will be important that the plans for a new points-based visa to attract international talent in science and research take account of the needs and circumstances of Scotland. The RSE looks forward to engaging with the UK government on the plans for this scheme.

“We support the UK government’s continued commitment to levelling-up opportunity and investment across the UK and we welcome today’s announcement of new polices on this. However, detail on how the Shared Prosperity Fund will operate is required to provide certainty to governments and communities across the UK.

“It is very positive that the UK will be able to fully associate with European Research programmes, including Horizon Europe. However, the Budget was a missed opportunity to set out detailed plans for how this will be funded. The RSE calls on the UK Government to provide clarity on this issue as soon as possible.”

Prof Sir Adrian Smith PRS, President, Royal Society, said:

“The UK’s presidencies of both COP26 and the G7 mean this is a big year for the UK to lead the way in tackling climate change. We are pleased that today’s Budget statement reflects the importance of environmental sustainability and the transition to net zero, with a focus on making possible the ‘green industrial revolution’ projects that will lead the way.

“Existing technologies and nature-based solutions are not going to be enough to decarbonise the world economy, which is why the Society is calling on the UK government and G7 nations to apply their political might and resources to support the rapid development of an evidence-based innovation and technology road map to net zero.

“We are going to need concerted support for the next generation of climate technologies and so it is welcome to see the government reaffirm its commitment to increase investment in R&D to at least 2.4% by 2027, with £14.6 billion to be invested in the coming year. I also welcome the chancellor’s support for improving the UK visa offer and a ‘proactive global outreach strategy’ to attract scientists to the UK. Investing in science, while attracting science talent from research leaders to early career scientists and technicians, is going to be crucial as we ‘build back better’.

“We are disappointed that the government has not used this opportunity to announce additional funding for the UK’s association to Horizon Europe but look forward to further announcements. A real term decrease at this time would send the wrong signal to a sector that will be key to a successful recovery.”

Steve Bates, Chief Executive Officer, BioIndustry Association (BIA), said:

“The COVID-19 pandemic has shown the strategic necessity for the UK to have a thriving domestic life sciences and biotech sector. Companies and researchers from across the UK have led in the global effort to develop, manufacture and deploy the COVID-19 vaccines, therapies and diagnostics needed to re-open the global economy. As the Prime Minister made clear last week, this successful public-private partnership is the formula for our country’s prosperity for years to come, a strong and active government investing massively in science and technology, coupled with a dynamic enterprise economy.

“The Chancellor rightly highlighted the UK’s opportunity to grow as a life science superpower as a core part of the future UK economy. For the life sciences sector, today’s Budget launches key reviews and consultations into R&D tax credits and listing regimes for capital markets, as well as new ways to attract entrepreneurs to the UK and for scaling companies to easily attract talent. The BIA looks forward to engaging in the detail of these initiatives to build the optimum environment for innovative life sciences companies to grow. By doing so, the Chancellor can anchor high quality jobs in the UK for the next generation. Great life science businesses like Fujifilm and CPI look forward to welcoming the HM Treasury team as neighbours in Darlington.”

Sir Paul Nurse FRS FMedSci, Director, The Francis Crick Institute, said:

“The Crick appreciates the Chancellor’s recognition of the importance of science to the UK, but today’s Budget leaves a number of unanswered questions.

“It doesn’t provide urgently needed support for medical research charities which are facing an unprecedented funding collapse caused by the pandemic. That will have a direct impact on the ability of organisations like the Crick to conduct medical research. Nor does it make any provision for the UK’s participation in Horizon Europe. At a time when research budgets are under pressure, these investments are critical.

“We were pleased to hear that visas will be reformed and bureaucracy reduced, but the UK immigration system is still one of the most expensive in the world. This is a significant deterrent, particularly to early-career scientists who are considering making the UK their research home.”

Dr Mark Down, Chief Executive, Royal Society of Biology (RSB), said:

“Recognition of the value of bioscience by the Chancellor is very welcome. The additional investment in the COVID-19-related public health response, including research, will enhance the impact of UK biological sciences. But, we must not lose sight of other key global challenges, especially the impact of climate change and the biodiversity crisis – political leadership is still required in particular as we approach COP26 this November in Glasgow: further and continued investment in skills and research remains essential.”

Prof Sir Jim McDonald FREng, President, Royal Academy of Engineering (RAEng), said:

“Today’s Budget, including the publication of ‘Build Back Better: our plan for growth’, provides welcome recognition of the potential of the UK’s high-growth, innovative technology companies alongside the importance of additional government investment in the green industrial revolution. We welcome the emphasis on ensuring that the UK is internationally competitive, encouraging business investment and ensuring that international innovators working across universities, start-ups, and innovative businesses, can readily bring their skills and expertise to the UK.

“However, our ambitions on net zero, infrastructure and digitalisation are threatened if we do not have the number and diversity of people with engineering and technical skills needed to deliver them. The pandemic has exacerbated inequalities in school age education, hugely disrupted further and higher education, and risks reducing the diversity of young people going into engineering.

“Engineering is a crucial component of infrastructure, skills and innovation – the mechanisms identified by government to drive the UK economy. In Engineering a resilient and sustainable future, the engineering profession set out actions that would achieve a recovery that marries economic renewal with the societal goals of spreading opportunity and skilled employment more evenly across the nation and reducing our net carbon emissions to zero by 2050. The engineering profession is ready to work with government to make that a reality.”

Prof Sarah Main, Executive Director, Campaign for Science and Engineering (CaSE), said:

“The Chancellor’s Budget understandably focussed on the health and economic recovery from COVID. There was a strong innovation theme, with support for innovative firms and the green economy, and this could shape an R&D-led recovery in the UK. Consultations on R&D tax credits and on unlocking pension funds to invest in R&D and innovation are welcome, as is support for small businesses navigating the visa system for the first time. These measures have all been called for by CaSE.

“However, for a Chancellor who wants the UK to be ‘at the forefront of the next scientific and technological revolutions’, announcements on science funding were notably scarce. There was no provision for the UK’s agreed participation in Horizon Europe, expected to cost around £2bn per annum, no specific measures to alleviate COVID pressure on UKRI’s budget, or support for research charities. Meeting these costs from the existing science budget would have an impact across the UK’s science and research activity.

“The UK’s strength in research and innovation can drive recovery and shape the future economy. But parts of the system have taken significant blows over the last year. For research and innovation to support UK recovery and growth, it must start from a strong foundation itself.”

Prof Paul Hardaker, Chief Executive Officer, Institute of Physics (IOP), said:

“IOP welcomes the government’s plans for an innovation-friendly Future Fund, a national infrastructure bank, and a detailed consultation on the competitiveness of R&D tax credits as ways to accelerate progress against the grand challenges facing the UK and of financing the green industrial revolution. These developments will not only help to unlock the potential of UK physics, an industry which will play a transformative role in developing the technologies and creating the jobs needed to accomplish these goals, but will help ensure that science plays as important a role in the UK’s recovery and future growth as it has during the pandemic.

“The UK will need a highly skilled, diverse and educated workforce to deliver the projects and innovations necessary to power this new revolution. While the announcement of a new visa system for science superstars is positive, the government must not overlook the potential of communities in UK regions outside traditional scientific hubs. Young people in all corners of the UK are passionate about solving the challenges of improving healthcare, a growing population, decarbonising economies, and ensuring water, food and energy supplies. IOP therefore looks forward to working alongside the government and industry to create new opportunities for them, particularly those from disadvantaged communities.”

On health:

Prof Dame Anne Johnson PMedSci, President, Academy of Medical Sciences (AMS), said:

“Today’s budget understandably focussed on the need to support the economy as the COVID-19 pandemic continues and to lay plans to rebuild the health and wealth of the UK. Biomedical and health research is at the heart of our response to COVID-19 and will be central to our collective social and economic recovery: from the vaccines that are being rolled out to help us get back to a life outside of lockdown; the work to address the long-term impacts of the pandemic on our physical and mental health; to the thriving life sciences sector which draws investment, creates high-skilled jobs across the country and improves the lives of patients and the public.

“This government has shown a strong commitment to research and development (R&D) and this Budget included welcome initiatives designed to help achieve the government’s ambition of making the UK a science superpower. I welcome plans to make the immigration system more attractive to international talent, and new support through a new ‘Future Fund: Breakthrough’ for the most innovative, R&D intensive businesses. Even so, and whilst we recognise the enormous financial challenge posed by the pandemic, some urgent questions remain unanswered about how UK R&D can be made sustainable – especially research careers – and how overarching R&D targets will be met to ensure medical research can continue to drive our recovery.”

Notes for editors: Prof Dame Johnson has also given a longer statement, published in full by the AMS here.

Hilary Reynolds, Interim Chief Executive Officer, Association of Medical Research Charities (AMRC), said:

“Whilst relying on science and our world beating research base to bring us out of this current health crisis, government has chosen yet again not to provide any clear support for charity-funded medical research in the budget.

“The integral role medical research charities play in UK research is under huge threat from the financial impact of the COVID-19 pandemic. Without support now, the amount of research charities can afford to fund will continue to plummet, placing a generation of early career researchers at risk without funding. This is putting back progress in saving and improving lives by decades.

“We have continued to talk with the government, bringing to life the impact of reduced charity-funded research, and continue to hope that the government has listened and will provide some practical financial support from funding allocated in the autumn Spending Review.”

Dr Marisa Miraldo, Associate Professor in Health Economics, Imperial College London, said:

“The budget announcement has unfortunately not delivered on the NHS, social care or prevention funding, nor on further mitigation of the short- and long-term impacts of the pandemic on an already underfunded health system pre-pandemic.

“The budget report announces an extra £3 billion to be spent on tackling the elective care backlog to fund one million procedures and diagnostics as well as address waiting times for mental health services. Our research shows that this is unlikely to address the care needs brought about the pandemic. NHS Confederation has projected waiting lists to reach 9.8 million by the end of 2020, requiring substantial increases in capacity just to reduce waiting lists. This is before we even consider the fact that due to prolonged waiting times these patients will require more intensive treatment with cost implications to care provision, or that socioeconomic inequalities brought about by the economic crisis will have a considerable impact on population health.

“The freeze on alcohol duty is a counterproductive measure. Revenues from alcohol taxes have been found to generate jobs and income from which economic benefit offsets the economic losses from less alcohol spending. But more importantly, it impacts population health and generates a further strain on care provision. Public Health England has found alcohol and drug use to be the leading ill-health risk factor for those aged 15 to 49, and the fifth across all age groups, leading to decreased productivity of our workforce, through presenteeism and absenteeism, and premature mortality and morbidity. Taxes have been found to be a highly effective policy to mitigate excessive drinking, therefore this measure is likely to further aggravate population health, generate avoidable care costs and impact negatively the economy.”

Prof Bart de Strooper, Director of the UK Dementia Research Institute, UCL, said:

“Today’s Budget represents another missed opportunity to tackle the enormous societal and economic costs of dementia. The research community has been hit hard by COVID, and urgently needs delivery of the pledged ‘dementia moonshot’ to double research investment and kick-start progress towards treatments. Nor is there a plan for better, more sustainable care for people with dementia. Every time we fail to address these problems, they grow in size.

“The Chancellor is right to focus on the challenges of a post-COVID world. But no challenge is more pressing than the one posed by dementia – which is responsible for more deaths, and costs more, than any other disease.

“It is vital that the Government now uses the Comprehensive Spending Review in the autumn to lay out its plan for how we will better care for people with dementia, and provide the funding required to support research into much-needed treatments.”

Prof Franco Sassi, Professor of International Health Policy and Economics, Imperial College London, said:

“The lack of additional structural funding for the NHS, beyond the commitment of expenditure to face the pandemic emergency, is disappointing given the large underfunding of the system. Healthcare expenditure in the UK was 43% lower than in Germany and 15% lower than in France, before the pandemic, after accounting for differences in purchasing power.

“There are major capacity constraints to be overcome in the NHS. The number of doctors, 2.8 per thousand population, is significantly lower than the EU average. The number of nurses has been decreasing in the past 10 years, contrary to what is happened in other European countries. The UK has the second lowest number of hospital beds per population in Europe. If these structural capacity constraints are not addressed, the NHS will fail to meet patient needs and expectations in a post-pandemic world.

“Addressing healthcare capacity constraint cannot be postponed further. It will place additional demands on public finances, already under significant strain, but the risks involved in leaving the NHS underfunded are too great. A sensible use of consumption taxes may work both as a source of additional revenues and as an incentive for healthy and environmentally sustainable consumption. The freeze on alcohol duties, unfortunately, does not seem to go in the right direction.”

On climate/environment:

Dr Ajay Gambhir, Senior Research Fellow at The Grantham Institute for Climate Change, Imperial College London, said:

“The budget was poor on specific green measures and felt almost like there was no net-zero target or declared climate emergency in the UK. This didn’t feel like a budget that was fit-for-purpose in driving an acceleration towards net-zero in any way.”

Declared interests

The nature of this story means everyone quoted above could be perceived to have a stake in it. As such, our policy is not to ask for interests to be declared – instead, they are implicit in each person’s affiliation.