Comprehensive Spending Review 26th June 2013

HM Treasury has published the following on funding for research in the comprehensive spending review 26th June 2013:

The Department for Business, Innovation and Skills (BIS) settlement includes:
•£2.5 billion of capital funding, including £2.2 billion for capital spending and
£300 million for financial transactions in 2015-16. To help provide long-term
certainty, the Government has agreed a capital budget of £2.2 billion in 2016-17,
excluding financial transactions;
•£4.6 billion to maintain resource funding on science in cash terms and £1.1 billion
to maintain capital spending on science in real terms; and
•£185 million of additional resource funding for the Technology Strategy Board
(TSB) to support innovation, including Catapult Centres and the Biomedical
The Government is committed to ensuring that the UK remains a world leader in science
and research, and will maintain resource funding for science in cash terms at £4.6 billion in
2015-16. It will increase capital funding in real terms from £0.6 billion in 2012-13 to £1.1 billion in 2015-16, and in line with inflation to 2016-17. Furthermore, the Government will
extend the Research Partnership Investment Fund (RPIF) to 2016-17, making available
£160 million per year of match funding to leverage private funding for scientific infrastructure.
The TSB will receive an additional £185 million in resource funding to support innovation. As
announced at Budget 2013, the Government is also providing long-term sector support through
a £1.6 billion industry-matched fund as part of its Industrial Strategy.
The Government has already delivered more than one million apprenticeship starts in this
Parliament. This settlement maintains spending on apprenticeships for those aged 19 or above,
which will continue to allow individuals to develop skills for the future and help businesses to
secure employees with the skills they need. The Government will consult on major reform of
apprenticeship funding this summer to ensure purchasing power is held in the hands of
employers. The consultation will consider options to make payments to employers including
reform of BIS’ delivery systems and use of Her Majesty’s Revenue & Customs’ (HMRC) Pay As You
Earn system. The Government is committed to raising the quality of apprenticeships and to
implementing key reforms in the Richard Review.
The Government’s traineeships programme will be extended to 19-24 year olds, to help
support young people to make the transition from education into work.
Service Reform
The decision taken at Spending Review 2010 to reform higher education (HE) and further
education (FE) funding continues to place both sectors on a more sustainable financial footing.
The reforms will provide a better balance of funding between the state and the individuals who
benefit from the education and training they receive, allowing the Government to reduce
spending by £400 million in 2015-16.
The Government will refocus the National Scholarship Programme to support
postgraduate students from disadvantaged backgrounds. The £50 million fund will be
administered by the Higher Education Funding Council for England (HEFCE). HEFCE will allocate
the money competitively to higher education institutions, and will attract additional scholarship
funding from the private sector or from the institutions’ own resources.
In higher education, student maintenance grants will be maintained in cash terms in the
2015-16 academic year saving £60 million. At least £45 million will be saved through asking
HEFCE to reprioritise teaching grant spend. In further education at least £260 million savings will
be made by prioritising higher value qualifications, and reducing non-participation spending.
BIS will continue to maintain spending on economic growth by reducing spending on
administration by a further £50 million in 2015-16.
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