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devolution

Should UK Research and Innovation Funding Be Devolved?

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Some UK research and innovation funding could be devolved without transferring the whole UKRI budget. The live policy question is how much regional decision-making would improve the fit of investment to local needs—and whether that benefit would justify the costs to coordination, consistency and administration.

What does “devolving research funding” mean?

Devolution can mean giving a devolved administration, regional authority or mayor discretion over a defined pot of money. It does not have to mean transferring every research grant or ending UK-wide programmes. Proposals range from handing local leaders a role in allocating new regional funds to much broader changes in who sets priorities and distributes public R&D investment.

That distinction matters because UK research funding already operates through a mixed settlement: UK-wide responsibilities sit alongside devolved higher-education funding arrangements. The argument is about changing some decisions, not treating the entire system as either wholly centralised or wholly devolved.

How is research funding governed now?

UKRI’s UK-wide responsibilities

The UKRI Framework Document 2025 gives UK Research and Innovation a UK-wide remit for its science and humanities councils and Innovate UK. It also provides for engagement with devolved administrations and cooperation with devolved funding bodies, including consultation on UK-wide matters affecting all four higher-education systems. Decisions on reserved matters remain for UKRI and UK government ministers.

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England and the devolved higher-education systems

Research England’s primary focus is English higher-education providers. Scotland, Wales and Northern Ireland have their own higher-education funding bodies: the Scottish Funding Council, the Higher Education Funding Council for Wales, and the Department for the Economy in Northern Ireland. The House of Commons Science and Technology Committee described these arrangements in its 2019 report, Balance and effectiveness of research and innovation spending; the 2025 framework is the more current source for UKRI’s remit.

These arrangements show that distinct funding roles and UK-wide collaboration can coexist. They do not, on their own, settle whether more regional discretion would lead to better investment decisions.

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Why do advocates want more regional control?

Nesta’s 2019 report, The Missing £4 Billion: Making R&D work for the whole UK, argues for devolving a substantial fraction of additional government R&D funding to devolved nations and UK regions. Its proposal is not simply to divide a fixed national budget by population: it links new funding to local plans, the ability to allocate money well, and investment in places with low R&D intensity.

Innovation Deals and local capacity

Nesta proposes “Innovation Deals” through which English regional government, such as combined authorities, would demonstrate that they can allocate funding effectively. The report also recommends institutions focused on translational research and spreading innovation, as well as stronger geographic data, accountability routes and place-focused funding tools at UKRI.

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The case for this approach is that people and institutions closer to a region may be better placed to identify its opportunities and barriers. That is a policy rationale, not proof that devolving funds will automatically raise productivity, research quality or private investment.

What are the risks of devolving more?

Regional discretion has to work alongside research that crosses administrative borders, national priorities and existing UK-wide programmes. If new allocation bodies duplicate current ones, extra complexity and overhead could outweigh gains from local knowledge. If local institutions lack the capacity to assess proposals, the funding may not be allocated effectively.

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A 2025 Foundation for Science and Technology interview presents a qualified position: support for devolution to a limited extent, but not for transferring all UKRI funding to regions. The interviewee argues that existing arrangements should be used where possible, rather than creating a new set of structures and complexities. These are the speaker’s judgments about how to balance regional control and coordination, not a settled assessment of the effects of devolution. See “Region really does matter”.

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What does the Wales funding comparison show?

During Senedd Cymru plenary proceedings on 5 February 2025, a speaker said Wales received around 3.1% of total UK research and innovation funding annually while having 5.9% of the UK population, describing the difference as around £153 million a year. The figures are a parliamentary statement, recorded in the Senedd proceedings, not a causal study.

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The comparison gives context to arguments about geographic distribution, but it does not establish why the shares differ or what a different allocation system would change. The cited passage does not by itself specify the accounting definitions or period behind the estimate. A population share is also not, by itself, an agreed formula for how research funds should be allocated.

What change is planned from 2031?

UKRI’s 2026–2031 strategy, published in July 2026, describes a £500 million Local Innovation Partnerships Fund for partnerships among civic institutions, businesses and universities. From 2031, mayors of established mayoral strategic authorities are to have the ability to decide how and where to target regional R&I investment as the fund is devolved.

This is a specific prospective fund and recipient group, not a commitment to devolve UKRI’s full budget. The same strategy retains UK-wide applicant-led research and UK-wide priorities alongside place-based investment, making the plan an example of a mixed model.

How should a devolution proposal be judged?

The practical question is not simply whether funding should be central or local. A proposal needs to specify the money, decision-makers and safeguards clearly enough to assess whether local discretion improves outcomes without weakening collaboration or accountability.

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  • Scope: Identify which funds and stages of R&D would move, and whether the change affects existing allocations or only future and additional money.
  • Authority: State whether a devolved administration, combined authority, mayoral strategic authority or another body would advise, set priorities or make final allocation decisions.
  • Allocation criteria: Explain how national research excellence, regional economic priorities, capacity-building, need and any match-funding requirements would be balanced. No population-share formula is established by the cited sources.
  • Readiness: Set out how recipient bodies will assess proposals and distribute funds, including whether capacity must be demonstrated before money is transferred.
  • Coordination: Show how the arrangement will support cross-border research, UK-wide collaboration and national programmes, while fitting existing relationships between UKRI and devolved funding bodies.
  • Accountability: Publish geographic allocation data, transparent criteria and clear lines of responsibility, then evaluate what the funding achieved.
  • Administrative cost: Prefer workable existing structures where possible, and make clear why any additional machinery is worth its cost.

The available sources identify these trade-offs but do not establish a causal estimate of how much devolution would change productivity, research quality, regional equality or total private investment. Any assessment should therefore turn on transparent design and evaluation, rather than an assumed benefit or harm.

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