Facing a Budget Crisis, UK Will Not Cut S&T Spending

Facing the largest budget deficit in the European Union, British Prime Minister David Cameron will not to cut spending on S&T. The European Commission predicts the UK will face a 12 percent budget deficit in 2011. To combat this deficit, the Cameron led Tory-Liberal Democrat coalition took drastic measures to reduce the deficit by 2014. In October, Chancellor George Osborne unveiled the budget plan, which will cut almost all government departments by an average of 19 percent over four years. This austerity plan should reduce spending by almost £80 billion pounds (roughly $126 billion) according to Fox News. However, core science spending will remain frozen at £4.6 billion (approximately $7.3 billion) over the next four years according to a recent article in C&I magazine. According to the Chronicles of Higher Learning, the top 20 research-intensive universities will see a 2.5 percent increase in research funding. The country also will invest £220 million ($350.7) in the UK Centre for Medical Research and Innovation.

In July, ahead of the pending budget cuts, Cameron unveiled a "Big Society" plan focused on public-private partnerships and civic involvement. Cameron's plan will be financed through the new Big Society Bank — a fund to help set up partnerships, fund social enterprises and volunteer projects focused on regional and community development. Public-private partnerships will undertake a competitive process to receive funding for their projects, which will cover a broad array of services including education, economic and community development.

The country's new infrastructure plan also will incorporate public-private partnerships "to specify infrastructure needs, identify the key barriers to achieving that investment and to mobilize the resources." The government hopes that government spending in infrastructure will encourage private investment. The government will attempt to leverage £40 billion ($64.8 billion) into almost £200 billion ($318.8 billion) in infrastructure investments. The plan takes a broad definition of infrastructure to include the country's green economy and innovation strategies. The plan includes:

• Investing in a new low carbon economy - including a Green Investment Bank, up to £1 billion ($1.6 billion) for one of the world's first commercial scale carbon capture and storage demonstration projects, and the provision of grants to increase the uptake of electric vehicles;
• Providing the best superfast broadband in Europe by 2015 - a total of £530 million ($884.8 million) of investment over the Spending Review period; and,
• Investing £30 billion ($47.8 billion) in transport - including a high-speed rail network, a Crossrail, over £10 billion ($15.9 billion) for maintenance and investment in key road and local transport schemes across the country and £14 billion ($22.3 billion) of funding to Network Rail to support maintenance and investment.