Strategy Director, STFC Sharon Cosgrove Strategy Director, STFC PPAP, 5 July 2010

Today Economic landscape The budget The spending review The implications? What we are doing How you can help

Economic landscape

Economic landscape

The budget The budget announced reducing deficit by £128bn by 2015/16 23% from tax and other measures 77% from Government department expenditure cuts Continue with previously announced capital cuts Reduce by third by 2014/15 Protect “areas of productive expenditure” Estimates of revenue cuts across Departments Average reduction 25% by 2014/15 NHS, International Development, Education & Defence protected By implication non-protected Departments higher burden

The budget Budget plans for spending cuts to 2015-16 Budget sets firm and fixed envelope for spending review Assuming inflation ~2% delivers 25% real savings by 2014/15

The spending review Departments working with HMT now on initial plans for delivering their objectives within reduced budgets We are talking to BIS to help in their discussions with Treasury, guided by Council sub-group BIS’s discussions with Treasury likely to continue over summer Spending Review on 22nd October will Set expenditure limits for every Government department Require 33% cut in Research Council administration BIS allocations Formal process starts 22nd October, iterative and ongoing discussion until Christmas To main budget heads first, then detailed budgets STFC allocation likely December

The spending review Departments asked to prioritise resources within tighter budgets against tough criteria Is the activity essential to meet Government priorities? Does the Government need to fund this activity? Does the activity provide substantial economic value? Can the activity be targeted to those most in need? How can the activity be provided at lower cost? How can the activity be provided more effectively? Can the activity be provided by a non-state provider or by citizens? Can non-state providers be paid to carry out the activity according to the results they achieve? Can local bodies as opposed to central government provide the activity?

The implications? Science Minister confirmed that science budget will have to make contribution to savings Previous commitments rolled into Spending Review process Diamond phase 3, ISIS Target Station 2 phase 2 Extrapolating from government announcements, “average” cuts would impact deeply

What we are doing Being persistent in arguing the case for our science Strenuously reminding Government that our science has already taken painful and deep cuts Mobilising those that bring our case to life Preparations for the autumn spending review Data, case studies, community engagement plan

How can you help? Continue to deliver great science Clear message from Government is that everyone has to share the pain and that it welcomes constructive input Help us demonstrate the impact of your work Demonstrate why investment in our science is productive expenditure Other ways of doing things, working smarter etc

Summary The budget sets out a deep savings programme The spending review will be an iterative and ongoing process from now till Christmas Clarity on the required levels of savings from the science budget have yet to emerge Even “average” cuts would have a profound impact We need to deliver great science and demonstrate its productive worth Any suggestions for smarter working will help our case

Discussion