Spending review delay risks 2.4% goal

The government’s target to increase total spending on R&D to 2.4 per cent of GDP by 2027 is in jeopardy due to a potential delay to a planned review of all departmental spending.

A comprehensive spending review setting out government priorities for the next three years—including funding to drive progress on the 2.4 per cent target—was supposed to start before the parliamentary summer recess and end in the autumn.

But Liz Truss, chief secretary to the Treasury, said on 4 June that the review was “unlikely to happen” on schedule, due to the Conservative Party leadership contest triggered by Theresa May standing down as prime minister. Truss told the House of Lords Economic Affairs Committee that the government would instead give departments a year-long extension to their budgets.