Ahead of the spending review, Chancellor Rachel Reeves has announced £86 billion for the UK's fastest growing sectors, including tech and life sciences, advanced manufacturing and defence.

There will be £22.6 billion a year in 2029/2030 for research and innovation. Every £1 invested in R&D generates up to £7 in benefits to the UK economy and leverages double in private investment in the long run

The new R&D package will mean local leaders have government backing to develop ‘innovation clusters’ across the country, to unlock the talent and opportunity in every region and nation.

The funding is designed to build on work already underway to transform local communities through the Innovation Accelerator pilot scheme. The scheme has already supported new technology developed by the Greater Manchester advanced diagnostic accelerator.

Chancellor of the Exchequer Rachel Reeves said: "Britain is the home of science and technology. Through the Plan for Change, we are investing in Britain’s renewal to create jobs, protect our security against foreign threats and make working families better off."

Science and Technology Secretary, Peter Kyle, said: "R&D is the very foundation of the breakthroughs that make our lives easier and healthier – from new medicines enabling us to live longer, more fulfilled lives to developments in AI giving us time back, from easing our train journeys through to creating the technology we need to protect our planet from climate change.

"Incredible and ambitious research goes on in every corner of our country, from Liverpool to Inverness, Swansea to Belfast, which is why empowering regions to harness local expertise and skills for all of our benefit is at the heart of this new funding – helping to deliver the economic growth at the centre of our Plan for Change."