Following the Chancellor’s budget announcement in March 2021, the government has continued to show a firm commitment to funding R&D across the UK.
The latest announcement sees the creation of the ‘Advanced Research & Invention Agency’ (ARIA)- a new independent research body that will fund high-risk and high-reward scientific research to ensure the UK cements its place as a global leader in science and innovation. The agency will be led by leading scientists who will identify and fund transformational science and technology projects. The government is aiming for the agency to be fully operational by 2022 as part of their initiative to invest £14.6 billion in R&D in 2021 to 2022, to put the UK on track for 2.4% of GDP being spent on R&D across the UK economy by 2027.
The announcement of the new agency is part of the government’s plan to help put the UK at the forefront of global scientific and technological invention. ARIA will be backed by £800 million of government funding over the course of this Parliament, as set out by Chancellor Rishi Sunak in the March 2020 Budget. The agency will take inspiration from world-leading innovation funding bodies that aim to avoid unnecessary bureaucracy and increase efficiency by experimenting with different funding models. It will have a much higher tolerance for failure than is normal, recognising that trial and error is an essential part of the R&D process.
The agency is fantastic news for innovative companies across the UK as there will be another avenue to access funding for crucial R&D work- a cash-flow boost which many business owners will welcome given the current economic climate.
Read more here about the new agency on HMRC’s website: https://www.gov.uk/government/news/uk-to-launch-new-research-agency-to-support-high-risk-high-reward-science