Following the release of the UK Government’s Spending Review 2025, the Center for Data Innovation (CDI) issued a statement through Policy Analyst Matthew Kilcoyne. The statement expressed concerns over the government's modest increase in research and development spending.
The Spending Review outlines an increase in R&D funding from £20.4 billion to £22.6 billion by 2029. According to Kilcoyne, this increment is barely enough to keep pace with inflation over the four-year period.
Kilcoyne commented on the AI Opportunities Action Plan, which is valued at £2 billion and includes 50 recommendations for delivery. He noted that a significant portion of this plan's funding has already been allocated as startup subsidies through the British Business Bank, suggesting that resources may be spread too thinly across various priorities.
He stated that while these investments provide some support to the UK's tech economy, they are incremental rather than transformational changes. "To truly boost economic growth and compete globally," Kilcoyne argued, "the UK needs to radically increase public R&D funding and adopt bolder policies that catalyse private-sector investment in R&D, technology, and automation."
Kilcoyne concluded by warning that the current approach is insufficient for positioning the UK as a leader in global innovation. He cautioned that without more significant budget increases, "the UK risks sleepwalking toward tech irrelevance."
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