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Sir keir starmer And Rachel Reeves The science and technology industry must show “clear leadership” to tackle the brain drain that is causing the UK economy to “swell”, peers have warned.
In a devastating report, the Lords Science and Technology Committee said Government Action to revive growth in the sector – including easing visa costs for high-skilled professionals.
Ministers have set out ambitions to make the UK “one of the top three places” to grow businesses – where revenues grow much faster than costs – but the country is “sliding in the opposite direction”, the group warned.
“The UK has seen promising science and technology companies move abroad rather than grow here,” the committee said.
“The UK’s inability to sustain the economic benefits of its R&D efforts is a fatal flaw in any development strategy.”
The committee said the UK still has a chance to take advantage of the “huge opportunities for technological and economic growth” with decisive action from the government to “stop the bleeding”.
In its report on Wednesday, the cross-party group of peers reiterated its call to address “the high upfront costs for visas reserved for global talent” to attract scientists and entrepreneurs to the UK.
The committee said the UK should “roll out the red carpet instead of red tape” when highly skilled professionals in the industry want to come to the country.
The government is reportedly examining plans to cut visa application fees for overseas academics and digital experts, and the committee said it is “critically important” that this is not “blocked by Home Office intransigence”.
The report said: “The UK has a unique opportunity to attract global talent, particularly from the US, yet the Home Office’s historic reluctance to review the barriers to high-calibre talent is an absurd act of national self-harm.”
Another key recommendation calls for “clear leadership.” Prime Minister And chancellor “Through a new high-level National Council for Science, Technology and Development on the lines of the National Security Council”.
Peers said the council should meet regularly and include the Prime Minister, Chancellor, Science Minister, high-ranking officials from other departments, key scientific advisers and public investment bodies.
Its aim will be to “prioritise science and technology for development, breaking down barriers to progress and taking the UK out of its destruction cycle”.
Even during the committee’s investigation, major companies including Oxford Ionix, Deliveroo and Wise have relocated or expanded, and life sciences giants such as AstraZeneca are also “looking at the exits”, the chairman Lord Mayor warned.
He said: “If the UK is to arrest its decline, leadership and co-ordinated action is needed to protect and strengthen its science and technology sector.
“While the problems facing the UK economy are serious, with decisive and prompt action from the Prime Minister and Chancellor, our committee believes the challenges can be overcome.
“The government will need to do everything possible to support UK-based science and technology companies and entrepreneurs, and encourage private investors to do the same.
“By unlocking institutional investment, changing the culture around innovation, and streamlining its efforts across procurement, public investment bodies and regulatory reform, the UK government can still stop the bleeding and reap huge rewards for the nation.”
A government spokesperson said: “This Government recognizes the huge role played by UK science and technology in driving our economy forward, which is why we are supporting £86 billion of R&D in this spending review period alone.
“Our first-of-its-kind Digital and Technology Sector Plan is targeting investment, upskilling and driving regulatory reform in areas such as AI and quantum where the UK is strongest and through our global talent pathways we are attracting and retaining high-skilled talent to strengthen the UK’s position as a hub of emerging innovation.
“We already have a dedicated Council for Science and Technology, which reports to the Prime Minister, to drive our science and technology aspirations across government.”