My Lords, my noble and learned friend Lord Mackay kindly referred to my usual clarity. I fear, in so far as I ever had any clarity, it is rapidly dissipating as time goes on. Still, I will try to respond to many of the issues that have been raised in this very interesting debate.
I shall start with the governance relationship between research councils and UKRI. I will resist the temptation to address the broader issue raised by the noble Lord, Lord Bilimoria, but I recognise that the UK still underfunds research compared with many of our competitor countries. Nevertheless, the £2 billion increase coming into UK research in 2020 is a significant change. One has to ask oneself whether that would have come about without UKRI being about to become our key co-ordinating research body.
Through Clause 89 the research councils retain their right to make decisions within their respective discipline areas. I assure noble Lords that UKRI must
arrange for the seven research councils to carry out their roles and functions within their areas of activity. UKRI cannot prevent any of the research councils carrying out their functions in their respective areas.
I thank my noble and learned friend Lord Mackay for pointing out that references to “humanities” are in fact defined in the Bill, in Clause 105. It makes it very clear that they are defined as including the arts, and references to “sciences” include social sciences.
In discussions in the other place, the Government were clear that funding allocations would be made to each of the councils by the Government in the UKRI grant letter. Delegated authority limits will be set for the research councils to operate independently but additional approvals may be needed, including from the UKRI board, in line with current government best practice.
It is an important part of these reforms that UKRI will empower the councils to work together. The amendments would not prevent UKRI operating in this manner, but would obscure our intent for UKRI to take strategic decisions and facilitate development of the overall direction.
To address the point made by the noble Lord, Lord Mendelsohn, this reform is about far more than efficiency savings or a reduction in bureaucracy. We must deliver these where we have the opportunity to, but not at the expense of the strengths of the current system. However, the removal of the current duplication of back-office functions across multiple bodies will ultimately drive efficiency savings and reduce the administrative burdens placed on research and innovation leaders, freeing them up to focus on strategic decision-making. It will also help to deliver simplified systems and processes for funding recipients.
On Amendments 485C and 195A, I welcome the opportunity to assure noble Lords that UKRI’s core purpose is to seek to improve the UK’s science and knowledge base, and it will seek to improve knowledge and understanding through research. Advancing knowledge is a critical role of the whole of the UK research base, including UKRI and the research councils, and we will look carefully at this matter before we return to the House on Report. I share the aspiration of the noble Lords, Lord Willis and Lord Cameron, for UKRI to support research programmes that can help to shape government policy, ensure resilience and respond to key challenges facing the UK.
On social inclusion, community cohesion and social and cultural well-being, I am certain that the current duty on councils to consider the desirability of improving quality of life is sufficient to cover these.
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Lastly, on Amendment 495B, I can assure noble Lords that, through UKRI, research councils will continue to fund research in universities, research facilities and institutes, including fundamental and blue-sky research with no immediate application. Therefore, I can assure noble Lords that the Large Hadron Collider, the theory of numbers and, indeed, the research going into dementia now, are not in any way prejudiced by anything in the Bill. The Bill makes it clear that it is
the role of Innovate UK to directly support innovative businesses with funding. It replicates the current legal basis for Innovate UK.
However, we must not tie the hands of the research councils or prevent them increasing the collaborative work they already undertake with Innovate UK. I understand the concerns of noble Lords that the research councils should be able to operate widely, and we will look carefully to see whether any further additions to the functions of UKRI could be beneficial. On that basis, I ask the noble Lord to withdraw the amendment.