More cash for R&D but questions over funds for the north

Tetsuya Lijima from Nissan giving a demonstration around the roads of east London of a prototype Nissan Leaf driverless car.

As part of his first Budget, Philip Hammond announced plans to “enhance the UK’s position as a world leader in science and innovation” by allocating £270 million to support research into “biotech, robotic systems and driverless vehicles”.

Driverless vehicle trials have already begun in several locations around the UK, including Milton Keynes and Greenwich in London.

The Chancellor also confirmed that £16 million will be used to create a hub for running trials into 5G connectivity, while £200 million will be invested to fund a programme of local projects to test ways of accelerating the roll out of full fibre broadband across the UK. However there was some concern that much of the new research spend will be spent in the north.

Ed Cox, director of IPPR North said: “London will see £1,500 more in transport spending per person than the North and the South will see 75 per cent of R&D spend.

“Today’s Budget announcements won’t shift this pattern. We need a bottom-up industrial strategy if we are to create an economy that works for everyone.”

Elsewhere analysts suggested the projected funds may struggle to have a long-term impact.

Dan Ridsdale of Edison Investment Research said: “The £270 million for disruptive technologies is unlikely to go very far.

“The technologies highlighted - biotech, robotic systems and driverless cars are all very pertinent right now but others with lower profiles are just as deserving. This would spread the funds even thinner.”

While Dik Vos, from software assurance firm SQS, also warned a lack of consumer trust in the sector.