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UKRI
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UKRI

UK public body funding research and innovation across nine councils including Innovate UK.

UKRI confirmed on 9 July 2026 that the Science and Technology Facilities Council's national laboratories would lose 58% of their funding over four years, a move it defends as reallocation but the Institute of Physics calls a genuine loss of capacity.

Last refreshed: 31 July 2026 · Appears in 1 active topic

Key Question

Is UKRI reallocating record funding or quietly gutting scientific breadth?

Timeline for UKRI

#13 27 Jul

Physics loses 2.7% as STFC holds flat

UK Startups and Innovation
#12 14 Jul

Lords question UKRI chief on funding

UK Startups and Innovation
#11 9 Jul

Confirmed a 58% cut to STFC's national-laboratory budget

UK Startups and Innovation: UKRI confirms 58% cut to STFC labs
#9 18 Jun
#8 10 Jun

Co-backed Midlands Mindforge alongside DSIT

UK Startups and Innovation: Midlands fund writes its first cheques
View full timeline →

Background

UKRI has run nine formerly separate research councils under one roof since 2018, among them Innovate UK, the ESRC, the EPSRC and the STFC. Roughly £8bn passes through UKRI each year on its way to those nine councils, all answering ultimately to the Department for Science, Innovation and Technology.

The agency's role is to allocate that flat, record-level settlement across competing scientific priorities, a task that inevitably produces winners and losers between councils and between facility maintenance and frontier research. Its own annual state of The Nation reporting and public settlements are watched closely by the research community, Parliament and industry alike, since UKRI's allocation choices shape which fields of British Science and innovation grow and which contract.

Key Issues
STFC funding cuts

Lab funding cuts draw fresh scrutiny

UKRI confirmed on 9 July that Science and Technology Facilities Council funding for national laboratories will fall 58% over four years, mothballing the Clara electron-beam facility at Harwell and cutting multidisciplinary-facilities funding by 15%, a reduction it values at £162m by 2029/30; other UKRI councils are redirecting more than £100m to soften the transition.

Chief executive Sir Ian Chapman defended the settlement as reallocation within a flat, record-level budget when Lords peers questioned him on 14 July, five days after the cut was confirmed; UKRI is expected to publish a new strategy shortly, the test of whether that framing survives scrutiny from bodies such as the Institute of Physics.

Grant funding squeeze

Grant funding concentrates on fewer bets

UKRI's Innovate UK Arm replaced open grant competitions with a DARPA-style portfolio model in April 2026, scouting deep-tech companies across six priority sectors instead of running broad open rounds.

The result shows in the numbers: UK grant awards fell to their lowest count since 2016, even as the average award size rose almost 11% to £423,000, evidence that UKRI's councils are backing fewer companies with larger cheques rather than retreating from funding altogether.

Common Questions
Why has the UK grant count fallen to a 10-year low?
UKRI data shows a multi-year decline in total grants awarded, partly reflecting a deliberate shift towards concentrating funding in fewer, higher-value awards rather than broad distribution.Source: uk-startups-and-innovation
What is the difference between UKRI and Innovate UK?
UKRI is the parent body; Innovate UK is one of its nine councils, specifically focused on business-facing innovation funding rather than academic research.Source: uk-startups-and-innovation
How does UKRI decide who gets funding?
UKRI uses peer review panels, competition processes, and, increasingly under the Velocity model, active portfolio management that concentrates support behind its strongest recipients.Source: uk-startups-and-innovation
Why did UKRI cut STFC's national laboratory funding by 58%?
UKRI confirmed on 9 July 2026 that it is cutting STFC's national-laboratory funding 58% over four years and mothballing the Clara facility, while raising STFC's estates budget 27% and diverting over £100m from other councils to soften the transition.Source: Lowdown