Ministers might replace industry research grants with loans

Ministers are reviewing funding for the Innovate UK, the £600m-a-year quango that works with industry and the public sector to transform university research into commercial success.

They are considering proposals to replace research grants to industry with loans, the Financial Times reported today.

Mike Tynan, chief executive officer at the Nuclear Advanced Manufacturing Research Centre in Rotherham, said the Government has provided “tremendous support” to UK manufacturing through Innovate UK and its Catapult centres.

He added: “At a time when the UK economy is in need of its manufacturers, it is essential that central funding support to industrial innovation and productivity is maintained.”

Last month, a BIS spokesman said: “Decisions on funding beyond 2016 will be made during the Spending Review which will examine where best to make robust investments in science and research.”