Budget 2017: Experts attack investment in R&D

The boost for research and development could be only half a billion pounds, an industry body has warned, despite on Wednesday the Chancellor promising £2.3 billion of R&D money, and with an extra year to reach it.

The Government previously committed to £12 billion of spending on R&D by 2020-21, while today it said it will dish out £12.5 billion by 2021-22.

“It becomes clear that R&D spend will actually only rise by £0.5 billion against current commitments for the year before [2020-21],” said Norman Lamb, chairman of the science and technology committee.

Philip Hammond said a further £500 million will be spent to boost artificial intelligence, 5G mobile networks and full fibre broadband.

“A new tech business is funded every hour and I want that to be every half hour,” he said.

The Chancellor also unveiled extra funds and tax incentives for electric car drivers, including a new £400 million charging infrastructure fund, an extra £100 million Plug-In-Car Grant, and £40 million for research into charging.

A tie-up between the Government, CBI and TUC will help “set the strategic direction” for a National Retraining Scheme to boost digital skills and support expansion of the construction sector.

Around £30 million will be ploughed immediately to set up distance learning courses to harness digital skills.