Autumn statement: Hunt backs AI research and investment zones

More support for AI research, Holocaust education in universities and the next locations for university- and research-centred investment zones were among the measures announced in the Westminster government’s autumn statement.

The chancellor, Jeremy Hunt, said there would be up to £7 million a year over three years for organisations such as the Holocaust Educational Trust to tackle antisemitism “in schools and universities”. This funding will “ensure support is in place for schools and universities to understand, recognise, and deal with antisemitism effectively”, said the Treasury’s autumn statement document.

Meanwhile, Mr Hunt announced a further £500 million over two years to enhance access to compute, “which powers the development of AI models”, the Treasury said. This, it added, brings “total planned investment in compute to more than £1.5 billion”, allowing “researchers and SMEs to develop new foundation models and maximise the UK’s potential in AI, enabling, for example, the discovery of new drugs”, and meaning “universities, scientists and start-ups have access to the compute power they need to help make the UK an AI powerhouse”.

To achieve a “simplified R&D tax credit”, Mr Hunt said, the “existing Research and Development Expenditure and SME schemes will be merged”, with additional extra tax relief for small and medium-sized enterprises.

And he announced £5 million for Imperial College London and Imperial College Healthcare NHS Trust to support the creation of a Fleming Centre, which the Treasury document said would “tackle the global fight against antimicrobial resistance”.

Mr Hunt said there would be £4.5 billion for advanced manufacturing, which the Treasury said would “help unlock private investment in strategic manufacturing sectors, starting in 2025-26 and lasting for five years”. That included £2 billion “for the automotive sector to support the manufacturing and development of zero emission vehicles, their batteries and supply chain”.

The chancellor announced the West Midlands, the East Midlands and Greater Manchester as the sites of the next three investment zones, focused, respectively, on advanced manufacturing, advanced manufacturing and materials, and green industries and advanced manufacturing. In last year’s autumn statement, Mr Hunt said there would be a change of approach from the short-lived Liz Truss government’s focus on creating these zones as low-tax, deregulated areas, stating that there would be 12 zones focused on “leveraging our research strengths by being centred on universities in left-behind areas to help build clusters for our new growth industries”.

Earlier in the week, the chancellor announced that he would accept the recommendations of a review of spin-outs led by University of Oxford vice-chancellor Irene Tracey and Andrew Williamson, a managing partner of the University of Cambridge’s in-house venture capital fund. This will see universities will take a smaller stake in spin-offs in a bid to drive greater private investment, and the autumn statement included an additional £20 million to support this.

Rosalind Gill, head of policy and engagement at the National Centre for Universities and Business, said: “The raft of measures to pour more capital into UK science and technology companies are hugely welcome, as is the dedication of £20 million to support university spin-outs specifically. Today’s announcements will help us move towards greater prosperity.”

Tim Bradshaw, the Russell Group chief executive, said: “It is hugely positive the chancellor has today prioritised measures to boost innovation in order to drive growth and productivity across the UK.”

He added: “As the chancellor said, ‘the best universities, the cleverest scientists and the smartest entrepreneurs have given us Europe’s most innovative economy’. We couldn’t agree more and look forward to working with the government to deliver on its ambitions for prosperity and sustainable growth.”

Vanessa Wilson, the University Alliance chief executive, said: “The chancellor is absolutely right to identify skills and innovation as two of the biggest levers for growth in the UK. The announcement of new investment zones, the focus on boosting university spinouts and the increase in R&D tax credits for SMEs will all help harness the innovation within professional and technical universities to drive growth.”

On investment in apprenticeships, where Mr Hunt announced £50 million in funding for apprenticeship provision in key growth sectors such as engineering, Ms Wilson said: “We will eagerly examine the detail around additional investment in apprenticeships: we know the degree apprenticeships our members deliver in partnership with employers like Rolls Royce have had a significant impact for employers, students and local economies.”

But she added there was a “notable absence of support for students”, a pressing issue given that “current student maintenance support is inadequate in the face of the cost-of living crisis”.

The National Union of Students (NUS) accused Mr Hunt of “ignoring student poverty”.

“What we needed in this budget was a sharp increase in maintenance loans immediately to keep students afloat and a plan to reintroduce maintenance grants. What we got was benefit sanctions, which will leave many people without the lifeline benefits are supposed to provide and disproportionately impact disabled students,” said Nehaal Bajwa, the NUS’ vice-president for liberation and equality.

john.morgan@timeshighereducation.com