If Osborne wants growth, he must protect science and our universities

The huge cuts to laboratories and equipment have already undermined the UK's world class science base.

Britain’s long-term prospects for economic growth could be seriously damaged today if the Chancellor announces further cuts to the funding for scientific research in the Spending Review. Three years ago, he froze the overall budget for research projects and made huge reductions in the amount to be spent on laboratories and equipment, undermining the UK’s world class science base in universities. One of the implications of the attack on science funding for the UK’s competitiveness became obvious earlier this month when we were overtaken for the first time by China in a key international league table showing the proportion of national wealth that is invested in research and development. According to provisional figures from the OECD, total R&D spending by China in 2011 increased to 1.84 per cent of its gross domestic product, up from 1.76 per cent the year before, while UK expenditure fell from 1.80 to 1.77 per cent over the same period.

It is particularly ironic given that the government has this month hosted the annual summit of the G8 nations, which previously was a gathering of the world’s biggest economies. The UK now lies fifth among the G8, behind Japan, the United States, France and Germany, in terms of annual expenditure on research and development, and well below the average for the 28 Member States of the European Union.

Some may question whether it really matters that our competitors are investing more in R&D than us. After all, the input of funding does not guarantee the quality of output in terms of products and services that drive economic growth. But a review of data from 19 countries published by the OECD earlier this year concluded that productivity growth is linked to R&D and patenting.

The decrease in UK investment in research and development is partly due to the reduction in government funding, which fell slightly from 0.58 to 0.57 per cent of GDP between 2010 and 2011. But the relatively low level of the UK’s R&D spending is not only due to declining government support for science. The private sector in the UK also invests less than its counterparts in other countries. This is largely because of the dominance of businesses in the services sectors, which traditionally do not carry out very much in R&D. The latest breakdown shows that the financial and professional services sectors, including banking, insurance, accounting and management consultancy, provided 14.5 per cent of UK GDP in 2011, up from 13.5 per cent the previous year, a much higher proportion than in any other G8 country, including the United States.

The coalition has acknowledged that the UK’s future competiveness depends not just on our traditional strengths in areas such as financial services, but also requires the nurture and growth of new knowledge-based businesses and industries. The Coalition Agreement promised to "create a fairer and more balanced economy, where we are not so dependent on a narrow range of economic sectors". And its ‘Plan for Growth’, published in March 2011, laid out an ambition for the UK to not only remain the world’s biggest centre for financial services, but also to become a global leader in, for example, advanced manufacturing, life sciences, and low-carbon energy. Such sectors depend fundamentally for their success on research and innovation, and the government can create an environment that is conducive not just by offering the right financial incentives, such as tax credits for R&D, but also by ensuring a strong and healthy research base, particularly within universities.

Britain gave birth to the modern scientific revolution in the 17th century and its glittering list of international prize winners is evidence of our excellence in basic research. Most recently, Sir John Gurdon shared the 2012 Nobel Prize for Medicine or Physiology for his early outstanding work on the potential of stem cells, which provided the basis for today’s exciting pursuit of promising new treatments for many serious diseases and illnesses.

In a speech at the Royal Society last November, George Osborne acknowledged that "the sheer quality and range of scientific enquiry ... is one of our nation’s greatest achievements in which we can take real pride", and noted that "the quality of our scientific research base is one of the most significant factors encouraging international companies to bring high-value investment here". 

But the coalition is now sapping this strength, not just through underfunding, but also by its clumsy drive against immigration which is discouraging talented overseas researchers from coming to the UK to study and work.

With countries like China and other developing countries now emerging as economic powerhouses, and investing more in the development of their own knowledge-based economic sectors, UK universities can no longer expect to automatically attract the best and the brightest from around the world. So it is crucially important that the Spending Review boosts the UK’s future prospects for prosperity and growth by increasing research funding for our outstanding universities.

An original copy of The Origin of Species which forms part of 'The Royal Society: 350 Years of Science' exhibition is displayed in front of a portrait of Charles Darwin. Photograph: Getty Images.

Bob Ward is policy and communications director of the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science.

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Want to beat child poverty? End the freeze on working-age benefits

Freezing working-age benefits at a time of rising prices is both economically and morally unsound. 

We serve in politics to change lives. Yet for too long, many people and parts of Britain have felt ignored. Our response to Brexit must respond to their concerns and match their aspirations. By doing so, we can unite the country and build a fairer Britain.

Our future success as a country depends on making the most of all our talents. So we should begin with a simple goal – that child poverty must not be a feature of our country’s future.

The Institute for Fiscal Studies projects that relative child poverty will see the biggest increase in a generation in this Parliament. That is why it is so troubling that poverty has almost disappeared from the political agenda under David Cameron, and now Theresa May.

The last Labour Government’s record reminds us what can be achieved. Labour delivered the biggest improvement of any EU nation in lifting one million children out of poverty, transforming so many lives. Child poverty should scar our conscience as much as it does our children’s futures. So we have a duty to this generation to make progress once again.

In my Barnsley constituency, we have led a campaign bringing together Labour party members, community groups, and the local Labour Council to take action. My constituency party recently published its second child poverty report, which included contributions from across our community on addressing this challenge.

Ideas ranged from new requirements on developments for affordable housing, to expanding childcare, and the great example set by retired teachers lending their expertise to tutor local students. When more than 200 children in my constituency fall behind in language skills before they even start school, that local effort must be supported at the national level.

In order to build a consensus around renewed action, I will be introducing a private member’s bill in Parliament. It will set a new child poverty target, with requirements to regularly measure progress and report against the impact of policy choices.

I hope to work on a cross-party basis to share expertise and build pressure for action. In response, I hope that the Government will make this a priority in order to meet the Prime Minister’s commitment to make Britain a country that works for everyone.

The Autumn Statement in two months’ time is an opportunity to signal a new approach. Planned changes to tax and benefits over the next four years will take more than one pound in every ten pounds from the pockets of the poorest families. That is divisive and short-sighted, particularly with prices at the tills expected to rise.

Therefore the Chancellor should make a clear commitment to those who have been left behind by ending the freeze on working-age benefits. That would not only be morally right, but also sound economics.

It is estimated that one pound in every five pounds of public spending is associated with poverty. As well as redirecting public spending, poverty worsens the key economic challenges we face. It lowers productivity and limits spending power, which undermine the strong economy we need for the future.

Yet the human cost of child poverty is the greatest of all. When a Sure Start children’s centre is lost, it closes a door on opportunity. That is penny wise but pound foolish and it must end now.

The smarter approach is to recognise that a child’s earliest years are critical to their future life chances. The weight of expert opinion in favour of early intervention is overwhelming. So that must be our priority, because it is a smart investment for the future and it will change lives today.

This is the cause of our times. To end child poverty so that no-one is locked out of the opportunity for a better future. To stand in the way of a Government that seeks to pass by on the other side. Then to be in position to replace the Tories at the next election.

By doing so, we can answer that demand for change from people across our country. And we can provide security, opportunity, and hope to those who need it most.

That is how we can begin to build a fairer Britain.
 
 

Dan Jarvis is the Labour MP for Barnsley Central and a former Major in the Parachute Regiment.