London Daily

Focus on the big picture.
Friday, Aug 01, 2025

Autumn budget 2021: Rishi Sunak unveils new spending pledges including £5bn for health research and innovation and £3bn for skills education

Autumn budget 2021: Rishi Sunak unveils new spending pledges including £5bn for health research and innovation and £3bn for skills education

Rishi Sunak says he will do "whatever it takes" to support families feeling the pinch of higher prices - but critics warned that much of the funding would only reverse cuts by previous Conservative-led governments.
The chancellor has announced a series of spending pledges ahead of the autumn budget this week, which include £5bn for health research and innovation and £3bn for education.

Rishi Sunak has promised to do "whatever it takes" to support families with the cost of living, as he pre-empts Wednesday's address in the House of Commons.

Among his promises are:

• £1.4bn to encourage foreign investment into UK businesses and attract overseas talent

• £700m to be spent mainly on the new post-Brexit borders and immigration system, as well as a new maritime patrol fleet

• £435m for victims services, crime prevention and the Crown Prosecution Service

• £560m for adult maths coaching to help increase numeracy

• a six-month extension to the COVID recovery loan scheme to June 2022

Writing in the Sun on Sunday ahead of an appearance on Sky's Trevor Phillips on Sunday, Mr Sunak said: "I know that families here at home are feeling the pinch of higher prices… we will continue to do whatever it takes, we will continue to have your backs - just like we did during the pandemic."

However, he warned of potential pain, saying there would be "challenges" ahead to get public finances "back onto a strong footing".

Luke Sibieta, a research fellow at the Institute for Fiscal Studies, said that much of the funding would only reverse cuts by previous Conservative-led governments.

"We've seen the government announce extra funding for adults to get A-level equivalent qualifications, which is funding that was already available up until about 10 years ago," he said.

"So it's just bringing back what was there already to some extent."

There are also calls from Labour for the chancellor to remove VAT from domestic energy bills from 5% to zero for six months in order to help families this winter.

The party said the cut could be funded by higher than expected VAT receipts this year.

And the Liberal Democrats want Mr Sunak to make funding to end the cladding crisis a major focus.

The Treasury said the £5bn for health-related research and development will be provided over the next three years, with investment rising to £2bn per year by 2024 - a 57% cash increase since before the pandemic.

A total of £95m of the funding will be aimed at increasing uptake of cutting-edge innovations in the NHS and addressing cancer, obesity and mental health.

A UK-wide trial of COVID-19 antiviral treatments will receive £33m, while £40m will be spent on research in social care reform, £30m on investing in research skills and training, and £20m on research in climate change and health.

Financial support will be given for genome sequencing technology that can detect over 200 conditions in newborns, compared with existing tests that can just identify nine - potentially saving 3,000 babies per year, according to the Treasury.

The £3bn "skills revolution" funding will be used for post-16 education and to help adults looking to upskill and retrain.

Some £1.6bn of the skills education funding will be used to provide extra classroom hours for up to 100,000 16 to 19-year-olds studying for T-levels - technical-based qualifications.

The Treasury will also create 24,000 traineeships and use £550m to quadruple the number of places on skills boot camps in areas such as artificial intelligence, cybersecurity, and nuclear.

Existing colleges in England will receive £830m with extra funding for new equipment and facilities.

Apprenticeship funding will rise by £170m to £2.7bn in 2024-25, while free Level 3 courses - equivalent to A-levels - will be expanded in subjects like maths, chemistry, and biology.

Geoff Barton, general secretary of the Association of School and College Leaders, welcomed the investment, but said the pledge is "sketchy" and "appears to be limited in scope".

He said funding is also needed in schools, early years and for young people who do A-levels, BTECs and qualifications other than T-levels.

The £1.4bn business investment funding will hand out grants to encourage international companies to invest in the UK's critical industries, including life sciences and automotive.

This includes £354m to support investment in life sciences manufacturing, increasing resilience for future pandemics, and more than £800m for the production and supply chain of electric vehicles - including in the North East and Midlands.

To help overseas recruitment in the UK's science and tech sectors, a "talent network" will be set up in the Bay Area of San Francisco and Boston in the US in 2022, and also Bengaluru in India - places the Treasury described as "innovation hotspots".

By 2023, the programme will be expanded to six countries, targeting universities, research institutions and innovation hubs.

The Treasury's previous pledges include a new £500m fund to support those struggling with the cost of living over the winter.
Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
×