NAO urges UKRI to embrace risk and strengthen strategy to unlock research potential
James
The UK’s public funder of science and innovation, UKRI, has been encouraged to take bolder decisions and embrace a culture of well-managed risk to maintain the nation’s reputation for cutting-edge research, according to a new report by the National Audit Office (NAO). 
The report, published by the Comptroller and Auditor General, recognises UK Research and Innovation (UKRI)’s success in supporting a globally respected research and innovation (R&I) system, particularly in its agile response to challenges like the COVID-19 pandemic. However, it highlights opportunities for UKRI to evolve, particularly by improving how it manages risk and navigates government priorities.
“New ideas will not have a track record of delivery and innovative projects inevitably carry a higher degree of uncertainty,” said Gareth Davies, head of the NAO. “Although UKRI has played a key role in supporting a globally respected R&I system, there is more it could do to maximise value for money.”
The NAO’s recommendations focus on helping UKRI take more strategic and calculated risks in awarding grants, while developing the internal data and governance systems necessary to support those decisions.
UKRI, which spent £6 billion on research grants in 2023–24 and assessed nearly 29,000 applications, funds a broad spectrum of projects - from biomaterials for safer hip replacements to technologies supporting net zero goals. However, the NAO found that UKRI’s broad remit is hindered by a lack of clarity over government priorities, which are communicated through a patchwork of meetings, mission statements, and budget reviews, rather than a coherent, ranked strategy.
Additionally, UKRI’s data infrastructure - fragmented due to its formation from multiple predecessor bodies in 2018 - continues to limit its ability to evaluate the long-term impact of its funding or manage its portfolio effectively. The report also points to weaknesses in UKRI’s counter-fraud capacity, though it acknowledges that action is already underway to address staffing, strategy, and preventative work.
Crucially, the NAO recommends that UKRI explicitly define its “risk appetite” when making funding decisions, identify barriers to bold decision-making, and work closely with the Department for Science, Innovation and Technology (DSIT) to map out clearer objectives.
The report emphasises that pioneering research, by its very nature, demands a tolerance for uncertainty - and that a culture that rewards intelligent risk could be key to unlocking the UK’s next generation of scientific breakthroughs.
