Spending review is a clear commitment to drive productivity

The 2025 spending review signalled a clear commitment to the technologies that will drive greater productivity across the UK, according to Katherine Bennett, CEO of the High Value Manufacturing Catapult.

The Chancellor, Rachel Reeves, unveiled record investment in the country’s security, health and economy.

Ahead of the publication of the industrial strategy, £3bn in R&D and capital funding was announced for advanced manufacturing over the next four years, while R&D funding across all sectors will increase to £22.6bn per year by 2029-30.

Rachel Reeves told the House of Commons:

Innovation [is] a great British strength. Our universities are world-leading and we are proud of them.

And we want our high-tech industries in Britain today continue to lead the world in years to come: in car production, in aerospace, and in life sciences.

So we are backing our innovators, backing our researchers, and backing our entrepreneurs with R&D funding rising to a record high of £22bn per year by the end of the spending review.

Responding to the announcement, Katherine Bennett, CEO of the High Value Manufacturing Catapult, said:

The High Value Manufacturing Catapult welcomes the 2025 spending review’s focus on research and development, advanced manufacturing and innovation as key drivers of a successful UK economy.

From semiconductors to supercomputers, affordable housing to clean energy, the government has signalled a clear commitment to the technologies that will drive greater productivity in all regions of the UK.

We look forward to supporting the government’s industrial strategy, bringing innovation to market and translating investment into high value jobs, growth and economic prosperity.

Read more on the 2025 spending review here.