Scottish Budget represents a missed opportunity to build on physics capabilities

The Scottish Budget 2025-26 represents a missed opportunity to enhance and build on Scotland’s excellent reputation and capabilities in physics.

The Scottish Government’s 2023 National Innovation Strategy set a course for a cutting-edge Scottish economic future powered by physics-based technology, including energy transfer, digital health, advanced manufacturing, robotics and AI, quantum, photonics and space.

However, with physics-based industries generating one-sixth of our economy and one-tenth of Scottish jobs, the Budget now paints a mixed picture for physics with a risk of investment going elsewhere leading to Scotland being overtaken by other nations.

Key aspects of the Budget for physics include:

• The trebling of investment in green technologies such as offshore wind is welcome as we must move away from a hydrocarbon-based energy system to a renewable-based one, as detailed in the IOP’s 2023 report Physics Powering the Green Economy. The technology for wind generation is available and scalable now, though we must continue to pursue alternative sources and approaches where Scotland can excel including hydrogen, carbon capture and storage and fusion.
• The reduction in spending on innovation within the Enterprise budget is a concern. A recent IOP report on venture capital showed that there are great opportunities but also serious challenges for investment in physics deep tech and that these are more profound in Scotland than elsewhere in the UK, with Government having to provide more of a lead.
• The financial settlement for universities also did little to alleviate the profound financial pressure they are facing from the previous year’s budget and mid-year adjustment, including reduced funding per student, limits on funded places, threats to staffing and the survival of some courses, and an increasing reliance on fees from international students at a time of more constraints on immigration. All this was before the £45m impact of increased national insurance contributions.

Alison McLure, IOP Head of Scotland, said: “There is a welcome realisation in Government that physics makes a massive contribution to our economy, enabling the technologies we need for both growth and social progress. But as developments continue apace in physics innovation, industry and research, Scotland must be on the front foot in driving this work forward.

“The Scottish Budget this week presented a mixed picture for physics when what we need is a step change. Pupils studying the sciences in schools and researchers and apprentices beginning their careers need to know that physics offers them both a sustainable and impactful working life, and also the opportunity to build the future we all want to see, and we hope the Scottish Government and other parties recognise this as the draft budget continues its parliamentary progress and scrutiny.”