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

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

3. Economic landscape

4. Economic landscape

5. 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

6. 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

7. 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

8. 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?

9. 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

10. 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

11. 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

12. 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

13. Discussion