In a blow to UK science, the Department for Business, Innovation and Skills has announced the budgets for university research for upcoming fiscal years (see IBO 10/31/10). Funding for science and research programs has been “ringfenced.” Instead, capital funding will bear the brunt of spending cuts. “We shall delay capital investment to maximize investment in research projects and in people undertaking research,” stated the UK Minister for Universities and Science David Willetts. The government’s capital budget for higher education research and science will decline 41.1% from £873 million ($1,364 million = £0.64 = $1) in fiscal 2010–2011 (which started in April) to £514 million ($803 million) in fiscal 2011–2012. In subsequent fiscal years, the capital budget further declines 12.6% and 7.3%, before increasing 24.3% in fiscal 2014–2015.

Capital budgets for university-funding bodies will show a drastic annual decline starting in fiscal 2011–2012 and will generally remain at a lower level over the subsequent four years. As the table below shows, the largest drop in capital funding will occur in fiscal 2011–2012, when the seven Research Councils’ capital budgets in total plummet 39% and the capital budget for the Higher Education Funding Council for England (HEFCE) drops 55%. The two institutions account for the bulk of UK academic research funding. Among the hardest hit Research Councils will be the Medical Research Council (MRC), which will experience a 75.5% decline in its capital budget in fiscal 2011–2012 to £33 million ($52 million). Capital funding for HEFCE will fall 55.0% to £75 million ($117 million).

Although universities’ capital spending for research declines, total research budgets remain fairly consistent over the five-year period. According to documents released December 20, the UK government’s total allocation for science and research resources will remain steady at £4,576 million ($7,150 million) for each fiscal year from 2010–2011 through 2014–2015. For the five-year period, the Research Councils’ budget will total £10,356 million ($16,181 million), including £1,433 million ($2,239 million) for the Biotechnology and Biological Sciences Research Council, £2,217 million ($3,464 million) for the MRC, £1,185 million ($2,836 million) for the Natural Environment Research Council, and £707 million ($1,105 million) for the Science and Technology Facilities Council Core Program. The budget for the HEFCE will total £6,734 million ($10,522 million), and the budget for the National Academies will be £347 million ($542 million).

The Department of Business, Innovation and Skills’ documents also stated that the government has allocated an additional £1.9 billion ($3.0 billion) to science and research over four years as part of its 2010 Spending Review.

Fiscal-Year Budget for Selected UK Institutions (£M)

FY11 FY12 FY13 FY14 FY15

Research Councils £2,549 £2,596 £2,574 £2,587 £2,600

Capital Funding £393 £240 £199 £181 £181

HEFCE £1,731 £1,662 £1,700 £1,686 £1,686

Capital Funding £167 £75 £91 £90 £102