As a non-departmental public body sponsored by the Department for Science, Innovation and Technology (DSIT), the budget of UK Research and Innovation’s (UKRI) is determined by:
- the overall funding allocated to DSIT for research and development (R&D) at Spending Review and budgets
- subsequent decisions by the Secretary of State as to how that funding should be allocated to UKRI and other partner bodies
The DSIT Secretary of State decides on UKRI’s overall allocation and, within that, allocations to councils, key programmes and the balance of dual support.
The UKRI budget allocation process consists of the following steps.
Step 1: Spending Review outcome is announced
The Chancellor announces Spending Review (SR) outcomes, which sets the overall DSIT budget for research and innovation.
Step 2: DSIT commissions information, develops planning assumptions and allocations advice
DSIT commissions information from within the department and from partner bodies (including UKRI) to inform the process of allocating its overall budget.
DSIT develops planning assumptions, which are used to inform DSIT allocations advice to Ministers and provided to UKRI to inform our internal allocations process.
Preliminary advice on the allocation of the DSIT budget is discussed with Ministers, including the Secretary of State.
Step 3: UKRI continues allocation work
Using initial planning assumptions from DSIT and earlier UKRI planning processes, UKRI works across the organisation to develop initial allocations advice.
Step 4: Secretary of State allocates the DSIT R&D budget and sets partner body budget
The DSIT Secretary of State decides on the overall allocation of the DSIT R&D budget on the basis of advice provided by DSIT officials, including an overall budget for UKRI and other partner bodies.
Step 5: UKRI develops allocations advice
The Strategy Committee and Executive Committee develop UKRI’s comprehensive allocations advice.
Step 6: DSIT publishes organisation-level allocations
DSIT publishes its overall R&D allocations for the SR period, including UKRI’s overall organisational budget.
Step 7: iteration and refining of UKRI allocations advice
Once UKRI knows its final budget from DSIT, we use this to continue to iterate and refine our comprehensive allocations advice.
Step 8: agreement of UKRI's allocations advice
The UKRI Board agrees our comprehensive allocations advice.
Step 9: Secretary of State decides on the allocation of UKRI's budget
DSIT officials submit UKRI’s comprehensive allocations advice to the Secretary of State, who takes account of it in taking a decision on the allocation of UKRI’s budget.
Step 10: DSIT issues UKRI's delegation letter
DSIT issues UKRI with its delegation letter, setting out conditions associated with our budget.
Step 11: DSIT and UKRI publish UKRI allocations
Once approved by the Secretary of State, DSIT and UKRI will publish UKRI allocations.
Step 12: UKRI updates strategic plans to invest the allocation and monitor delivery
Once UKRI’s allocation is published, we will draw on extensive development over preceding months to update strategic plans to invest this allocation effectively.
Work begins with our wider research and innovation communities to invest UKRI’s allocation across our diverse-ranging portfolios, with a focus on maximising the benefits of our investment.
We look ahead and continue gathering the evidence we need to make the case for sustained investment in the UK’s research and innovation system.