Labour’s prioritising of higher productivity in the regions signals there could be “more pressure” on the R&D budget to deliver economic return – potentially “uncomfortable” for some in the sector – while its aims could be supported by devolving parts of that budget or by new kinds of universities, according to experts.
With opinion polls suggesting Labour is poised to form the next UK government, shadow chancellor Rachel Reeves used her recent Mais lecture to argue that a “collapse in our productivity growth which explains our wage stagnation” – in particular, lagging regional productivity – means a “fundamental course correction” is needed to boost living standards and “the health of our democracy”. Meanwhile, she also said the UK’s position at the forefront of global innovation is “thanks in no small part to our universities, which, despite the immense challenges facing the sector, stand among the best in the world”.
Amid a bleak outlook for public finances, Labour could demand more from an obvious potential source of economic growth in the swelling R&D budget, increased by the Conservative government from roughly £9 billion in 2017 to about £20 billion now.
“I think it’s fair to say that there is likely to be more pressure on the science budget to demonstrate its relationship to productivity growth, including regional economic growth”, said Richard Jones, the University of Manchester’s vice-president for regional innovation and civic engagement and a leading voice on how R&D investment could help drive regional productivity growth. “I think universities are potentially in a good position to respond to that, but that may need changes of emphasis, and that’s going to be difficult for some in the light of the very difficult financial circumstances many HEIs find themselves in.”
