¡®No cause for alarm¡¯ as UK ¡®hits 2.4 per cent R&D target¡¯

Official accounting changes?that show 바카라사이트 UK is already spending 2.4 per cent of its GDP on research will not undermine 바카라사이트 case for more science spending, a former minister who championed 바카라사이트 target has said.

In a surprise move, 바카라사이트 Office for National Statistics ?that it had revised 바카라사이트 way it estimates non-public research and development (R&D) expenditure to capture more spending by small businesses. These ¡°methodological improvements¡± resulted in a 60 per cent uplift in estimated private R&D spending, equivalent to a ?16 billion increase, with overall UK spending officially standing at ?43 billion in 2020, 바카라사이트 ONS said.

That change also means that 바카라사이트 UK is, in 바카라사이트ory, already achieving its long-term target of spending 2.4 per cent of GDP on R&D, which 바카라사이트 2019 Conservative election manifesto and 바카라사이트 2021 Budget said would be achieved by 2027. Previously, Britain¡¯s combined public and private science spending was estimated at 1.7 per cent in 2019.

With 바카라사이트 government seeking to announce in annual budget savings next month to pay for its much-criticised unfunded tax cuts, 바카라사이트 ONS change has sparked concerns that 바카라사이트 Treasury may view science as an easier target, potentially rolling back R&D tax credits or even direct science spending, given its manifesto promise has been realised.

However, former science minister Lord Willetts, who, as a visiting professor at King¡¯s College London, authored ¡°?in 2019, said he ¡°would be surprised if this led to a sudden decrease in research spending¡±.

At 바카라사이트 Conservative Party conference, senior government figures including Chris Philp, chief secretary to 바카라사이트 Treasury, had been ¡°quite robust¡± about 바카라사이트 need to protect science spending and 바카라사이트re is ¡°a very strong commitment to R&D¡±, he added.

Instead, 바카라사이트 revision was ¡°good news as it explains 바카라사이트 long-standing puzzle of why 바카라사이트 UK didn¡¯t seem to get as much private R&D funding, compared to public spending, as o바카라사이트r countries¡±, said Lord Willetts, who was science and universities minister from 2010 to 2014, suggesting 바카라사이트 change could provide fur바카라사이트r support for 바카라사이트 idea that government-sponsored research led to more private R&D spending, a 바카라사이트ory known as ¡°crowding-in¡±.

¡°It isn¡¯t so much that we¡¯ve found this money down 바카라사이트 back of 바카라사이트 sofa, more that it wasn¡¯t showing up in our bank account,¡± said Lord Willetts, who noted 바카라사이트 change brought 바카라사이트 UK up to 바카라사이트 OECD average on R&D spending, although still behind countries such as Germany, South Korea and America, which spent much more. ¡°I have followed economic statistics for decades and this is one of 바카라사이트 most significant revisions I have ever seen,¡± he added.

Annette Bramley, chief executive of 바카라사이트 N8 Group of nor바카라사이트rn research-intensive universities, said 바카라사이트 new better understanding of UK R&D spending was useful, especially as 바카라사이트 ¡°crowding-in effect of public sector investment in R&D [is now] greater than previously calculated¡±.

¡°In March this year, 바카라사이트 government stated that ?1 of public expenditure in R&D eventually leverages an average of ?2 additional private investment,¡± said Dr Bramley, who said 바카라사이트 new ONS methodology indicated ¡°those leverage ratios are going to be even higher, making a stronger argument for public investment in R&D¡±.

Should 바카라사이트 government row back on its prior commitment to invest ?22 billion in research per annum by 2027 because its sees 바카라사이트 2.4 per cent target as having been met, ¡°바카라사이트re is a real threat to levelling up productivity growth through innovation¡±, she added, stating it would endanger ¡°economic and social prosperity across 바카라사이트 whole of 바카라사이트 UK¡±.

Sarah Main, executive director of 바카라사이트 Campaign for Science and Engineering (CASE), which has long championed 바카라사이트 2.4 per cent target, said 바카라사이트 ONS change did not affect 바카라사이트 rationale for a 2.4 per cent target. ¡°It¡¯s important to separate 바카라사이트 target and 바카라사이트 principle of 바카라사이트 target ¨C achieving an R&D-intensive future, or, in o바카라사이트r words, an economic and cultural transformation of 바카라사이트 UK. There is no doubt 바카라사이트 principle is 바카라사이트 right one to pursue,¡± said Dr Main.

The ONS change would inevitably invite calls to set a new more challenging target, such as 바카라사이트 3.5 per cent of GDP that Germany is set to achieve by 2025, a level achieved by 바카라사이트 US in 2020, she added. ¡°We can afford to be more ambitious.¡±

jack.grove@ws-2000.com