£86 Billion UK Science & Tech Investment: What It Means for Life Science

The UK’s record £86 billion R&D pledge (worth £22.5 billion a year by FY 2029/30) will fuel regional life science innovation clusters.

The Big Numbers and Why They Matter

The Department for Science, Innovation & Technology confirmed the £86 billion multi-year science and tech budget on 8 June 2025. Chancellor Rachel Reeves framed the package as the “how we turn our potential into progress. This investment backs regions to lead the way in the industries that will define the future”. Annual public R&D spend will ramp to £22.5 billion by 2029/30, keeping pace with US and EU industrial strategy moves. New funding for Cambridge and Manchester (£4.8 million) and other pilots underscores a place-based strategy designed to crowd in private capital, deliver £7 of GDP per £1 public R&D and expand an R&D workforce already 2.8 million strong.

Regional Investment Reaching £500 Million Direct to Local Leaders

Up to £500 million is devolved to England’s seven mayoral authorities and devolved nations to build “innovation clusters”. Regions such as Liverpool and their life science hub focussed on accelerating drug discovery, and Greater Manchesters advanced diagnostic accelerator, delivering quicker and cheaper detection for liver, heart and lung diseases will all greatly benefit from this huge investment. 

Russell group universities are also set to benefit from this vote of confidence from the UK government, with Dr Tim Bradshaw, Chief Executive of the Russell Group commenting on the funding as "We know government faces difficult decisions on spending with tight fiscal constraints. We’re therefore pleased to see investment in the critical contributions that science and innovation can make to the lives of people throughout the UK."  It is important to note that every £1 of public funds invested in research at Russell Group universities, generates more than £8.50 for the UK economy as universities’ research and commercialisation activities deliver almost £38bn for the economy every year.