The Industrial Strategy Challenge Fund

Public Accounts Committee Closed Inquiry
Opened: 1 Feb 2021 Closed: 28 Jun 2021 Parliament page
The Industrial Strategy Challenge Fund (ISCF) awards support for research and development projects under the four themes of the government’s Industrial Strategy: clean growth, the ageing society, the future of mobility and artificial intelligence & the data economy. It constitutes a significant part of a government commitment to spend £4.7 … Read more
9 Recommendations
12 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Activity timeline 6 events
23 Nov
2021
Correspondence
10 Sep
2021
Correspondence
2 Sep
2021
Report published
30 Apr
2021
Report published
22 Mar
2021
Correspondence
4 Mar
2021
Oral evidence
Oral evidence sessions 1 session
4 Mar 2021
View on parliament.uk
Industrial Strategy Challenge Fund
Jo Shanmugalingam · Department for Business, Energy and Industrial Strategy Professor Dame Ottoline Leyser DBE FRS · UK Research and Innovation (UKRI) Sarah Munby · Department for Business, Energy and Industrial Strategy
Title HC No. Published Items Response
Fifty-Sixth Report - Industrial Strategy Challenge Fund HC 941 30 Apr 2021 21 Responded
Recommendations & Conclusions
4 results
Clear
14 Conclusion Acknowledged
Fifty-Sixth Report - Industrial St…
We were concerned that lengthy approval times, combined with changes in coinvestment requirements, could deter...
We were concerned that lengthy approval times, combined with changes in coinvestment requirements, could deter participation from some small and microsized companies.39 For example, we received written evidence from Tees Valley Combined Authority which told us that it had submitted … Read more
Government Response
The government acknowledges the impact of long approval processes and states that future challenge delivery models will consider a streamlined approach with simpler governance. It will also write to the Committee by October 2021 to detail plans for improving the speed of future funding approvals and update on existing improvement programmes.
HM Treasury
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15 Conclusion Acknowledged
Fifty-Sixth Report - Industrial St…
Delays in getting new challenges approved have had a knock-on effect on UKRI’s ability to...
Delays in getting new challenges approved have had a knock-on effect on UKRI’s ability to start spending. For example, in 2019–20, UKRI had underspent by £86 million, equivalent to 14% of its budget for the Fund the year. During 2020–21 … Read more
Government Response
The government acknowledges the impact of lengthy approval processes and states that future challenge delivery models will consider a streamlined approach with simpler governance. It will also write to the Committee by October 2021 to detail plans for improving the speed of future funding approvals and update on existing improvement programmes.
HM Treasury
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17 Conclusion Acknowledged
Fifty-Sixth Report - Industrial St…
One of the Fund’s five objectives is to increase collaboration between new small companies and...
One of the Fund’s five objectives is to increase collaboration between new small companies and those that are established. Analysis undertaken by the National Audit Office showed that UKRI had initially succeeded in attracting a range of different sized companies … Read more
Government Response
The government acknowledges the concern regarding SME engagement, stating UKRI is committed to increasing it. Lessons learned will inform the design of future Challenge-led funding, considering a more flexible approach to co-investment for SMEs, and the department will write to the Committee by October 2021 outlining how these learnings will be embedded.
HM Treasury
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21 Conclusion Acknowledged
Fifty-Sixth Report - Industrial St…
UKRI recognised the need to think about R&D expenditure in terms of what it described...
UKRI recognised the need to think about R&D expenditure in terms of what it described as the ‘place part of the agenda’.58 Comparing the distribution of the Fund with what it described as normal R&D expenditure, UKRI asserted that it … Read more
Government Response
The government acknowledges the importance of R&D funding for the levelling-up agenda and commits to investigating the drivers of regional disparity in funding distribution. It will work to improve participation for future Challenge-led funding, publish a UK R&D Places Strategy in 2021, and write to the Committee by October 2021 on how learnings will be embedded into future delivery.
HM Treasury
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Government Response AI assessment · 21 of 9 classified
Accepted 9
Acknowledged 4
Deferred 1
Not Addressed 4
Rejected 3
Total 9 recs + 12 conclusions
Correspondence 3 letters
23 Nov 2021 Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy & Industrial Strategy, re Fifty-Sixth Report of Session 2019-21: Industrial Strategy Challenge Fund (ISCF), 3 November 2021
Parliament page
10 Sep 2021 Correspondence from Sarah Munby, Permanent Under-Secretary of State, Department for Business, Energy and Industrial Strategy, re Fifty-Sixth Report of Session 2019-21: Industrial Strategy Challenge Fund (ISCF), dated 29 July 2021
Parliament page
22 Mar 2021 Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy and Industrial Strategy, re Response to the Committee regarding 04 March Industrial Strategy Challenge Fund Public Account Committee hearing, dated 18 March 2021
Parliament page