The recent budget announcement has left many feeling uncertain about the future. However could this increase in government spending benefit design, innovation, and creative industries?
Key Figures from the Budget
£520 million for a new Life Sciences Innovative Manufacturing Fund aimed at enhancing drug and medical technology manufacturing.
£20 billion earmarked for research funding across various fields, including engineering, biotechnology, and medical science.
£1 billion allocated to the aerospace industry.
£2 billion for spending in the automotive industry.
£20 billion in funding for R&D.
Improved tax relief for Britain’s creative industries, particularly in VFX for TV and film, alongside £25 million to redevelop the Crown Works Studios site in Sunderland, projected to create 8,000 new jobs.
Increase to employers’ national insurance from 13.8% to 15% starting April 2025, raising the cost of hiring employees.
Driving the Innovation Industry
The government's announcement of the new budget certainly set the stage for a spooky Halloween and a chilly start to November, but it’s not all bad news. Looking at some of the figures mentioned above, there are actually a few positive aspects to consider, particularly in the research and innovation sectors.
Many economists believe that the recent budget announcement offers a promising outlook for the UK's innovation landscape. The £20 billion allocated for research and development across engineering, biotechnology, and medical science all leads to the conclusion that groundbreaking innovation is on the horizon.
A notable example is the £520 million investment in the Life Sciences Innovative Manufacturing Fund, which will greatly benefit the pharmaceutical technology (pharmatech) industry.
As someone with a particular interest in femtech, I'm really excited about the potential for funding to support technology-driven solutions that address the historically unmet health needs of women.
What’s more, femtech has gained significant attention recently, with the emergence of companies like Flo Health, a period-tracking app, which is Europe and the UK’s first femtech unicorn.
Supporting Freelancers and Creative Industries
It’s tricky to say how the changes to payroll and National Insurance will impact those seeking agency work, especially given that the recent budget announcement has had a mixed impact on freelancers and contractors.
While tax relief for the visual effects (VFX) industry is positive, the increase in employer National Insurance could lead to a shift in hiring practices, particularly concerning traditional design agency work.
As companies face higher employment costs, they may opt for freelancers to fill skills gaps, offering flexibility and reducing the overhead costs associated with fixed-term contract (FTC) employment. This could lead to increased self-employment opportunities in creative industries.
However, it may also raise concerns about job security and benefits for freelancers, especially for young designers seeking experience and stable employment. On the other hand, this could also benefit young designers by offering them greater flexibility.
Transforming R&D
The recent budget's emphasis on innovation spending may impact the demand for industrial design skills. As industries like aerospace and automotive receive substantial funding, designers may be called upon to contribute to the shift toward electric vehicles and create solutions that not only meet current trends and demands but also adhere to new sustainability and technological standards. So for those who have a keen interest in the lovely lines and emotional aspects of automotive design, this could be great news for you.
While the £20 billion investment in R&D is substantial, it's difficult to predict its exact impact on the design industry. However, advancements in technology could create new opportunities for designers who are founding startups.
The continuation of the Made Smarter Innovation program, with up to £37 million in funding, will empower the industry by ensuring that manufacturers lean toward digital technologies while also driving sustainability.
Having come across many interesting and meaningful innovations that my peers and alumni were developing at the Royal College of Art, I find it particularly resonant that this type of funding may directly impact them. I have seen firsthand how hard startup founders work to secure funding for life-changing and impactful innovations.
Conclusion
Overall, I’d say it’s a pretty exciting time for science, innovation, and research and development, and I’m particularly interested to see how this new spending impacts some of my friends with medical innovation startups. As for the nature of hiring and design, it looks a bit rocky and uncertain if companies are going to be focusing on freelance and contract-based work. It might take a lot of outside-the-box thinking to determine how to position myself as a young designer in these ever-evolving times.
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