Chancellor of the Exchequer Rachel Reeves today (30 October 2024) delivered the Autumn Budget in the House of Commons. Among her announcements was a commitment to a new Life Sciences Innovative Manufacturing fund and promises to protect R&D funding in core areas.  

Hannah Davies, Chief Executive of the Northern Health Science Alliance, said:  “We were pleased to see the Chancellor prioritise innovation and funding for the life sciences sector, recognising it as central to the government’s industrial strategy for driving nationwide economic growth. This emphasis on supporting life sciences shows the vital role of the sector in enhancing health outcomes and bolstering the economy.

“The government’s plan for a new multi-year R&D Missions Programme, which will allocate at least £25 million in 2025-26 to tackle targeted challenges, is an exciting initiative. This programme aligns with our ongoing work to build on the excellence of our northern universities and NHS institutions and to foster growth by attracting private and third-sector investment.

“The £70 million commitment for the new Life Sciences Innovative Manufacturing Fund in 2025-2026 is a positive step, along with the promise of long-term investment of up to £520 million to strengthen resilience against health emergencies and leverage the UK’s R&D strengths. While this commitment is encouraging, and we look forward to further details, we had hoped to see more place-based funding to address decades of underinvestment in the North and mitigate policies that have limited growth in the region.

“Our research highlights a significant shortfall in R&D funding in the North of England, where investment remains disproportionately low. Any further cuts to health research funding would severely impact productivity and economic growth across the region. Investing in health research and development is crucial for fostering sustainable growth in the North of England, as it stimulates economic development both regionally and nationally while playing a vital role in improving local health outcomes.

“Investment in northern life sciences could generate 50,000 jobs and add more than £10bn to the economy by 2040, and this budget could have been an opportunity to begin investing for that future.  With balancing investment across the UK a key part of UKRI strategy, we hope to see future commitments to investment in the North’s health sciences made by the government and this imbalance addressed so we can build on one of the nation’s most valuable R&D assets.”