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Written question asked by Liam Byrne (Labour) on Monday, 16 December 2024, in the House of Commons. It was due for an answer on Thursday, 19 December 2024 (named day). It was answered by Darren Jones (Labour) on Thursday, 19 December 2024 on behalf of the Treasury.

Research: Finance

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the planned £20.4 billion of research and development spending on (a) economic growth, (b) the national investment rate and (c) crowding in of private investment.

Answer

At Autumn Budget 2024, the government protected R&D by allocating £20.4bn to support its missions, including the growth mission. Recent Department for Science, Innovation and Technology published research has found an average rate of return to public R&D of 40% after 6 years from when the investment is made [1]. The government’s investment will also boost business investment in R&D. Although estimates of the impact on private investment vary, on average £1 of public R&D investment leverages around £2 of private R&D investment in the long run [2]. The Office for Budget Responsibility is responsible for modelling the impact of government policy on the economy.

[1] Returns to Public Research and Development - GOV.UK

[2] Research and development: relationship between public and private funding - GOV.UK

Secondary information

Type
Written question
Reference
20147
Session
2024-26
Subjects
Finance Economic growth Research
Link
View this Written question on www.parliament.uk