Research Councils UK is looking at its policy on payments on research grants
to take inflation into account. The inflation rates applied to new grants will continue
to be reviewed annually in response to changes in HM Treasury's GDP deflator figures.
This ensures that research grant payments in future years are in line with changes
in the rate of inflation and underlying economic trends. In the light of recent
significant falls in inflation, RCUK is now exploring whether these changes should
also be applied to existing grants.
The review involves clarifying the position concerning changes to existing grants,
and exploring the financial implications for both the Councils and the research
base of such a move. This work is ongoing and a final decision will be reached and
announced in the autumn.
Ian Diamond, Chair of the RCUK Executive Group said: "The Research Councils are
committed to ensuring that their investments represent the best value for money
for the tax payer. All savings made as a result of changing indexation rate are
reinvested into research."
- ends -
Contact:
Chloë Somers
RCUK Press Officer
Tel: 01793 444592
Notes to editors
Research grants are long term investments that take place over a number of years.
Year one work is costed using current prices, and then the value of the subsequent
years of the grant is adjusted on the basis of the GDP deflators specified by HM
Treasury. These figures are reviewed annually by HMT at both the Budget and the
pre-Budget report. Current RCUK policy is to apply these changes to new grants.
The deflator rates applied to new grants in the last and current financial years
are shown in the table below:
| Financial year |
Adjustments applied to grants that start between: |
|
Apr 08-Mar 09 |
Apr 09-Mar 10 |
| 09/10 |
2.7% |
-* |
| 10/11 |
2.7% |
1.5% |
| 11/12 |
2.7% |
1.5% |
* The GDP deflator for 09/10 is 1%. The deflator has never been applied to
the first year of grants.
Further information on GDP deflators can be found at
http://www.hm-treasury.gov.uk/data_gdp_guide.htm.
The current HMT deflator rates are available at
http://www.hm-treasury.gov.uk/data_gdp_fig.htm.
About Research Councils UK
Research Councils UK is the strategic partnership of the UK's seven Research
Councils; they invest annually around £3 billion in research, covering the full
spectrum of academic disciplines from the medical and biological sciences to astronomy,
physics, chemistry and engineering, social sciences, economics, and the arts and
humanities.
The seven UK Research Councils are:
- Arts & Humanities Research Council (AHRC);
- Biotechnology & Biological Sciences Research Council (BBSRC);
- Economic & Social Research Council (ESRC);
- Engineering & Physical Sciences Research Council (EPSRC);
- Medical Research Council (MRC);
- Science & Technology Facilities Council (STFC).