Committee publication · Correspondence · 10 July 2026 · HC 56

Correspondence from UKRI CEO and STFC Executive Chair, re. STFC prioritisation process, 10 July 2026

From: Science, Innovation and Technology Committee

Summary

UKRI CEO and STFC Executive Chair write to the Science, Innovation and Technology Committee detailing STFC's prioritisation decisions following the Spending Review. Despite STFC's budget rising from £835 million to £842 million by 2029/30, rising costs in energy, labour, and foreign exchange necessitate targeted cuts. UKRI will provide over £100 million in additional support to ease transition, with gateway checkpoints in 2027 and 2028 to assess sustainability.

Key findings

STFC budget increases marginally (£835m to £842m by 2029/30) but cost pressures from energy, labour, and FX movements force prioritisation decisions shaped by community engagement roundtables, 48 written submissions, and 30 expert hearings.
Particle physics, astronomy, and nuclear physics (PPAN) discovery research protected with 2.7% budget decrease over four years; multidisciplinary facilities (Diamond, ISIS, CLF) budget cut 15% through efficiency savings and deliberate capability choices.
International programme contributions retained in full despite 19% cost increase; National Laboratories budget reduced 58% while Estates budget rises 27% for legacy issue remediation.
UKRI will provide over £100 million additional funding 2026/27–2029/30 via deferral of other programmes to ensure gradual transition and avoid sharp cuts; staff consultation and redeployment prioritised, no exits expected this financial year.
Two gateway checkpoints (2027, 2028) established to verify financial sustainability trajectory; closure of a multidisciplinary facility remains possible if targets not met.

Tone

Procedural

Topics

research-fundingscience-infrastructurebudget-allocationinternational-collaborationorganizational-restructuring

Key actors

Professor Sir Ian Chapman, Professor Michele Dougherty, Dame Chi Onwurah MP, UK Research and Innovation (UKRI), Science and Technology Facilities Council (STFC), Diamond Light Source, ISIS Neutron and Muon Source, Central Laser Facility

Notable line

“STFC will protect discovery research in particle physics, astronomy and nuclear physics (PPAN). Overall, the PPAN science budget will decrease by 2.7% over four years.”

Key Quotes

“At UKRI, our clear mission is to harness this strength to advance knowledge, improve lives and drive growth.”
— Professor Sir Ian Chapman · Opening statement of UKRI's strategic direction

“These include rising energy costs, unfavourable movements in foreign exchange rates, increases in labour costs inside STFC and in our partner organisations, as well as an expanded portfolio of activities, such as the National Cryogenics Facility”
— Professor Sir Ian Chapman and Professor Michele Dougherty · Explaining drivers of cost pressures forcing prioritisation

“STFC will protect discovery research in particle physics, astronomy and nuclear physics (PPAN). Overall, the PPAN science budget will decrease by 2.7% over four years.”
— Professor Sir Ian Chapman and Professor Michele Dougherty · Core protection within prioritisation framework

“To deliver a sustainable financial position by 2029/30, UKRI will provide further funding to STFC above and beyond its budget in order to support these measures and avoid making any sharp transitions.”
— Professor Sir Ian Chapman and Professor Michele Dougherty · Announcement of additional financial support

“If that is not the case, then STFC may need to close a multidisciplinary facility to reach financial sustainability.”
— Professor Sir Ian Chapman and Professor Michele Dougherty · Contingency outcome if gateway checkpoint targets not met

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Source · parliament.uk record ↗