Brexit: Science and Technology Sector

Science, Innovation and Technology – in the House of Commons at on 14 June 2023.

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Photo of Chris Stephens Chris Stephens Shadow SNP Spokesperson (Levelling Up)

What assessment she has made of the potential impact of the UK's departure from the EU on the science and technology sector.

Photo of George Freeman George Freeman Minister of State (Department for Science, Innovation and Technology)

Over the past six or seven years since 2016, this country has seen extraordinary growth in investment in our science and technology sector. Members do not need to take it from me: they can take it from those who track the investment. The UK has nearly 20 times more venture capital than its level of funding in 2011, and I am delighted to say that a majority of that—the fastest growth—is around the country. The east midlands and Northern Ireland have seen the sharpest increases in investment in the past four years, with growth in the east midlands topping at 300%. Something extraordinary is going on in this economy, and far from using Brexit as an opportunity to talk the country down, we intend to use it as an opportunity to lead in the smart regulation of the economies and sectors of tomorrow.

Photo of Chris Stephens Chris Stephens Shadow SNP Spokesperson (Levelling Up)

I thank the Minister for that answer, but the UK Government are pushing for a discount on membership in the Horizon programme, arguing that UK researchers have been disadvantaged by two years outside that programme. Does that not amount to the Conservative party openly admitting that cutting the UK off from Europe was damaging, and that we must return as a matter of urgency to European projects such as Horizon?

Photo of George Freeman George Freeman Minister of State (Department for Science, Innovation and Technology)

To be very clear, we negotiated membership of Horizon, Copernicus and Euratom specifically in our Brexit deal—it was the EU that held us out. Secondly, while we have been waiting, we have deployed over £1 billion of extra funding here in the UK to support our sector, and now that the Prime Minister has secured the Windsor framework, the negotiations are actively going on. I know that the Secretary of State will want to say something about that later. We intend to collaborate deeply with Europe and use our regulatory freedoms in the new sectors of tomorrow.

Photo of Oliver Heald Oliver Heald Conservative, North East Hertfordshire

Does my hon. Friend agree that it is as important to the EU as it is to the UK to have good science co-operation, and that the benefits of our wonderful companies such as Johnson Matthey in Royston and the big companies we have in Stevenage demonstrate the importance of international co-operation in business? That should happen in universities as well. It is for the EU as well as us.

Photo of George Freeman George Freeman Minister of State (Department for Science, Innovation and Technology)

My right hon. and learned Friend makes an important point. One of the attractions of Horizon is that we get back most of what we put in, and it funds research collaborations across our system, but the negotiations are important. We have been out of the system for two years; we need to get a fair deal, as the Prime Minister has made clear, and to make sure that the UK is not paying for stuff that it has not been able to access over the past two and a half years. I am sure that His Majesty’s Treasury is well equipped to have that negotiation on our behalf.

Photo of Chi Onwurah Chi Onwurah Shadow Minister (Business, Energy and Industrial Strategy), Shadow Minister (Science, Research and Innovation)

It is now 127 weeks of uncertainty, delay and broken promises since the Conservatives took us out of the world’s biggest and most prestigious science fund, Horizon Europe. Our scientists, universities and businesses have paid the price in lost jobs and investment, so will the Minister confirm or deny the reports that negotiations to rejoin Horizon have stalled because his Government are pushing for a reduced fee to reflect what they believe is a lasting reduction in grants won by UK scientists? If they have permanently damaged our success rate, should the Minister not be trying to fix that, rather than claim a discount?

Photo of George Freeman George Freeman Minister of State (Department for Science, Innovation and Technology)

I refer the hon. Member to the answer I gave a few moments ago. We have negotiated access to Horizon—it was the EU that kept us out. The Prime Minister has unblocked that through the Windsor framework. We have invested substantially through the funding guarantee for all Horizon programmes and through £850 million-odd of additional UK expenditure. We have also increased UK research and development to record levels. We will be at £52 billion by the end of this three years. There is no cutting of UK R&D as a result of this issue. We are actively negotiating to make sure that we get a good deal.