There’s a lot for UK innovators to welcome in the Autumn Budget, from stable research funding to new support for AI, cyber security and growing companies. For years, we have been calling out for some stability and it seems like we have been heard. Here is a summary of the changes from the Autumn UK Budget in relation to UK R&D grant funding.
At a glance
- Innovate UK and UK Research and Innovation (UKRI) programmes continue, backed by UKRI’s £38.6 billion settlement.
- New AI funding includes £120 million for the AI Security Institute and an additional £140 million for the Sovereign AI Unit.
- The British Business Bank grows to £30.6 billion, boosting follow-on investment for grant-funded firms.
Where is the new innovation funding going?
The Budget puts new money into AI and security:
- £120 million for the AI Security Institute
- £165 million for a National AI Biosecurity Initiative
- £154 million for cyber defences
- £40 million for a National Agentic Security Unit
- £140 million more for the Sovereign AI Unit
- a £15 million AI Challenge Prize, starting with the NHS
Much of this is expected to reach companies through competitions, challenge prizes and procurement during 2027, opening new opportunities for innovators in these sectors. From spring 2027, a new Innovation Marketplace will also help innovators sell directly to public sector buyers.
Is UK research and grant funding secure?
Yes, the Budget keeps research and innovation funding on a stable footing, with no structural changes to R&D spending and UKRI’s £38.6 billion settlement in place. The 2027 Spending Review will set the next stage of budgets, including capital spending, which is being trimmed by 1% across departments from 2027-28.
Grant funding is also rewarding commercial ambition. According to the Treasury, UKRI and Innovate UK now “place a stronger emphasis on commercialisation, entrepreneurship and the growth of innovative firms”. That is good news for companies with a clear route to market and a plan for growth.
Is the UK still open to European funding and global talent?
Yes, the UK’s association with Horizon Europe continues. This means UK organisations can lead and join projects, and UK companies can apply for EIC Accelerator grants. European grants are a strong complement to UK funding in any innovator’s plan.
The Graduate visa also stays at two years for graduates of “high-compliance” universities, helping R&D teams keep the talent they train.
What should UK innovators do now?
Now is a good time to identify upcoming relevant funding opportunities and develop a strategy. Open Innovate UK, UKRI, Horizon Europe and EIC calls offer the most certain funding available, and strong applications will show a clear route to market and a credible plan for follow-on investment. If you work in AI, cyber security, biosecurity or defence, line up partners and outline proposals ahead of new calls in 2027.
We help businesses and universities win funding from Innovate UK, UKRI, Horizon Europe and the EIC. Get in touch to discuss your next application.
Frequently asked questions
Is R&D grant funding protected after the Autumn Budget 2026?
Innovate UK and UKRI programmes continue, with no structural changes to R&D spending. Departmental capital budgets will be trimmed by 1% from 2027-28, and the 2027 Spending Review will set the next stage of research budgets.
Will there be new funding opportunities in 2027?
There is new funding for AI, cyber security and biosecurity, including an additional £140 million for the Sovereign AI Unit, is expected to reach companies through competitions, challenge prizes and procurement during 2027.
Can UK organisations still apply for Horizon Europe and EIC funding?
UK organisations can lead and join Horizon Europe projects, and UK companies can apply for EIC Accelerator grants of up to €2.5 million. EIC Fund equity investment is not available to UK firms.
Oliver Cressall
I help businesses unlock grant funding to fuel groundbreaking research and innovation. With expertise in both UK and European grants including Innovate UK (IUK), Eureka, Horizon Europe, UKRI, CINEA, and the European Research Council – I specialise in guiding research teams and innovation-led businesses through every stage of the grant process.
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