Earlier this week, science and technology secretary Liz Kendall told the UKRI Growth Summit in London that public R&D spending had been spread to thin, and that the government would prioritise “doing fewer things, better”.

To support that aim, £9bn of UKRI’s £38.6bn funding settlement will go towards fields of research in which the UK is among the strongest in the world, such as AI and quantum computing.

In addition, £8bn will be allocated to funding research into the government’s priorities, including the Industrial Strategy’s priority areas, while another £7bn will specifically fund innovative company growth.

The government is also providing £14bn in ‘curiosity-driven’ research to help with innovative breakthroughs in science and research. Universities will see core block grant and commercialisation funding from the government grow in line with expected inflation.

The news comes months after the government announced that publicly-funded R&D projects will be eligible for 10-year funding agreements.

Kendall said: “There is no route to stronger growth in this country, no answer to how we pay our way, or compete with the rest of the world, without science, technology and innovation leading front and centre. But we must be smarter about what we prioritise, for these efforts to succeed.

“By increasing funding for critical technologies like AI and engineering biology where the UK already excels, we can go even further.”

Professor Sir Ian Chapman, chief executive at UKRI, added: “The record investment in R&D shows government’s commitment to putting UK research and innovation at the forefront of our national success.

“At UKRI, our mission is clear: to advance knowledge, improve lives, and drive growth. We will invest strategically in areas where the UK can achieve a significant market share globally. Research and innovation must be central to boosting the UK’s economy and delivering real improvements to people’s lives and livelihoods.”