UKRI’s total research and innovation budget is rising during this Spending Review period, reaching almost £10 billion annually by 2030.
To deliver this investment effectively UKRI is changing.
From April 2026, we will distribute the majority of our budget into three buckets that align with our mission to advance knowledge, improve lives, and drive growth.
These buckets are:
- curiosity-driven research, including competitive applicant-led research and un-hypothecated block grants to English universities
- strategic government and societal priorities, including research into industrial strategy sectors and other government priorities
- supporting innovative companies to start and scale
This investment will be underpinned by a fourth bucket that supports essential capabilities needed to enable and strengthen UK research and development across the three priority buckets.
Many programmes will still be delivered by our research councils, as the domain and subject matter experts. However, where multiple councils have a significant interest in a field, like artificial intelligence, we will create one UKRI-wide targeted programme that brings together the best diverse expertise from across our organisation.
Further information
To learn more about the changes to our funding allocations, watch our CEO’s video [YouTube] on how the new model works, and see the accompanying diagram and explanatory note.
You can also read our budget allocations explainer document for full details.
Cost reductions at the Science, Technology and Facilities Council (STFC)
Despite a stable budget allocation over the next four years, STFC is facing some unique challenges. Global economic pressures, as well as rises in the costs involved in running complex technical facilities and services, mean that STFC’s operating costs have risen significantly.
To become sustainable, and to continue delivering the cutting-edge results it is known for, STFC will need to reduce its net annual operational costs. The amount of the reduction, relative to current forecasts, is £162 million by the end of the 2029 to 2030 financial year.
This is not the situation at other councils, and we do not anticipate equivalent measures will be necessary outside of STFC.
Last updated: 5 March 2026