Prime minister Theresa May has announced a new £2bn annual fund for research in science and technology innovation as more details emerged of the government’s industrial strategy.
The government will commit £2bn a year by the end of this parliament to “help put post-Brexit Britain at the cutting edge of science and tech”, May said at the CBI annual conference.
A new industrial challenge strategy fund will direct some of that investment to scientific research and the development of priority technologies, which she said would help address “Britain’s historic weakness on commercialisation and turning our world-leading research into long-term success”.
JLL UK chief executive Chris Ireland welcomed the investment. However, he said it was crucial that the funding was also directed to helping develop innovation hubs and new technologies.
The government will publish a green paper before the end of the year to seek views on its industrial strategy before issuing a white paper early in the new year.
The strategy, which is likely to be a key theme in the chancellor’s Autumn Statement on Wednesday, includes promoting firms and clusters outside of London and the South East.
May also said the government would review the support it gives to start-ups through the tax system. A Treasury-led review chaired by former private equity boss Sir Damon Buffini will examine how to break down obstacles to getting long-term investment into innovative firms.
May said the government would consult on plans to reform corporate governance, including executive pay and accountability to shareholders. However, she backed away from previous demands that would require companies to put worker representatives on boards.
“It will be a question of finding the model that works,” she said.
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