In a significant move to foster economic growth and innovation across the United Kingdom, the Prime Minister is set to transfer research and development (R&D) funding to regional authorities. This initiative, part of a broader plan to make Britain a global leader in innovation, will empower local leaders to invest in promising ideas and build world-leading industries.
Over the next four years, £1 billion will be invested in industrial clusters to support high-potential regions. This funding aims to drive growth by enabling local areas to leverage their unique strengths. The initiative marks a shift from centralised decision-making towards greater local control over economic futures.
Established mayoral strategic authorities in England will receive dedicated devolved later-stage innovation funding. This will allow them to back the most promising innovation opportunities within their areas. These funds will complement new Good Growth Funds, providing a flexible, long-term budget to create jobs, attract investment, and improve living standards.
The government also plans to foster new partnerships between innovation clusters across the UK. No.10 North will play a key role in forging these collaborations, starting with the Northern and Oxford to Cambridge growth corridors. These partnerships will connect leading universities, innovative businesses, and local leaders to accelerate the transition of ideas from research to commercial products.
Speaking at the Innovation Nation Conference, Prime Minister Andy Burnham highlighted the UK's strengths in science and technology, stating, "We’ve got the finest minds working at the most prestigious universities, the most innovative companies and clusters producing some of the most advanced technologies." He added, "We can grow our companies into global giants. We can extend the chain of human achievement. We can be the world’s innovation nation."
The reforms recognise that successful innovation requires more than just research funding. Businesses also need skilled workers, modern infrastructure, and strong links with academic and public institutions. By placing more decisions in local hands, the government aims to bring these elements together effectively, supporting the reindustrialisation of Britain and ensuring more home-grown ideas translate into successful companies and well-paid jobs.
