Comprehensive Spending Review 2007

1. Comprehensive Spending Review 2007 CCLRC/PPARC – OSI bilateral 13th March 2007

2. Realising the STFC opportunity • A new research council with a new mission and new priorities • A high international profile • A major vehicle for delivering economic impact • Science and Innovation Campuses: • important routes for inward investment • internationally competitive critical mass • at the heart of STFC aspirations • each CSR07 priority builds on the campus model

3. ADVANCEMENT OF SC I ENCE • Increased national prosperity and improved quality of life • Improved service provision • Growth in GDP • Growth in inward investment • Highly-skilled workforce • Jobs created • Jobs protected • New companies • Expanded companies • More profitable companies LONG TERM OUTCOMES INPUTS OUTPUTS STFC Knowledge Funding • CORE BUSINESS • . • Operate and develop facilities • Conduct research • Create technology • Train people • Transfer knowledge • Engage the public • Promote the importance of research Technology People Technology Knowledge Intellectual Property People

4. Progress since last bi-lateral • Huge progress in establishing Council • Structures, key management appointments, appointments of Council, charter etc • Understanding the financial position across the new Council • Progress on Campuses • Set up in-house Science review • Programmatic review planned across whole Council programme

5. Financial: Flat cash will not deliver! • Inherited decisions • Diamond VAT - £12.8M over 3 years: Phase 2 VAT - £12.6M over 3 years • SRS closure costs - £ 18.1M • ERLP bridging - £3M over 3 years • Shared Services £5.5M • Core Science • Deliver value for money on international subscriptions (185m/yr) through domestic programme - (£54m over 3 years) • Fund domestic component of Aurora programme (£21m over 3 years) • New facilities coming on stream • Inability to fully exploit past investment in Diamond & ISIS TS2 (£13m over 3 years) • Utility costs and exchange rate fluctuations • Cost of Delivering STFC Vision • Economic Impact & investment in Campuses • Underlines the importance of domestic programme – source of KE • Potential loss of EYF??

6. STFC Priorities • Three categories of prioritization (note that these are very much relative priorities within the programme) • Top • High • Lower

7. Top Priority • Exploitation of recent major investments and subscriptions • DIAMOND, ISIS TS2, Astra • ESA, CERN (LHC), ESO (VLT, ALMA, ELT) • New Initiatives • Exploration • Campus Development, Step Change in KE

8. High Priority • Existing activities that will be reviewed (opportunities for savings but need for some restructuring investment) and potential new initiatives: • Existing operations • Accelerator R&D • Support for Cross-Council Programmes, including Energy • In-house research • In-house technology support and development • New initiatives (XFEL, FAIR, HiPER, SKA, ILC etc.)

9. Lower Priority • Facilities where productivity has already peaked but where significant restructuring cost would be needed to bring forward closure: • EISCAT, Tevatron, BaBar • ING, UKIRT • SRS

10. Issues and possible CSR bid • Any reductions or restructuring of high priority programmes would involve some frictional costs e.g. redundancy payments. • Early and even planned reductions or cessation of lower priority activity would certainly incur costs that we have no provision for e.g. redundancy, decommissioning, non-cash costs. • Political and reputational damage to be managed.

11. Impact of STFC new investment opportunities Cross-Council Impacts

12. New facilities investment • Impact: • Delivering sustainable world-leading facilities • Realising the potential of current investment • Investing in the future through the LFCF (SKA, ELT, ESS, HiPER, ILL, ESRF, 4GLS, ILC, NF) • UK leadership and influence contingent on modest R&D pump priming • Deliverables: • World-leading science • New technologies, skills, spin-outs and industry support • Cost £6M pa run as RCUK programme • Discussed by RCUKEG, paper being produced for next meeting. RCUK working group meeting on 19th March

13. Campus development: UK-based ESA Centre • Impact: • Builds on UK strengths in space science • Provides a focus for technology exploitation • Opportunities for greater engagement with NASA & other world agencies • Campus provides co-location opportunities for specialist technology businesses (& supporting services) • Deliverables: • New physical facility • New cross-disciplinary science outcomes (molecular biology, geochemistry, ecology, geology, astronomy, space technologies & applications) • Progress: • High-level meeting with ESA scheduled for Mar 27th (tbc) • Aim is agreed plan by end of May • UK contributes land – may be other contributions depend on negotiations • Investment in Exploration & Technology programmes to establish healthy core of activities • Clear attractor to Campus for space industry & others

14. Space exploration programme • Impact: • Path finding the scientific and commercial exploitation of the Moon • Builds on momentum and technical capabilities of Aurora investment • Deliverables: • Important new solar system science • Greater technological capability • Technology innovation based on small satellites lead • Major commercial return and export opportunities • Cost and timing • Up to £20m per year from ~2008 • Progress: • on-going discussions with NASA • Aim to sign joint study agreement in April • UK low-cost lunar mission studies creating considerable wider international interest

15. Space Technology Programmeon behalf of BNSC partnership • Impact: • Position UK to remain competitive in space arena • Increased knowledge transfer and innovation through improved exploitation of the UK science and technology base • Activities undertaken in partnership with academia and industry. • Builds on Campus activities including ESA Centre • Deliverables: • Programme management team established April ‘07 • Announcement of first programme call by November ’07 • Cost £19.2M pa

16. Multidisciplinary programmes • Impact: • RCUK multidisciplinary programmes dependent on STFC tools and expertise • Deliverables (from baseline budget or new RCUK funding): • Underpinning Technologies for: • Energy – partner in cross-council programme • Terrorism • Nanoscience • Systems biology

17. Economic Impact through training • Impact: • Meets demand from employers for high-tech skills and trains the next generation of researchers • Builds capacity to exploit campus developments • Facilities and technology centres provide a unique training ground • Deliverables: • increase the training budget by 50% to provide: • Facility-linked studentships • Prestige fellowships • Training to build capacity for future new facilities • Cost £10M pa

18. End

19. A Sustainable Core Programme • With appropriate additional funding, a programme of continuous, long-term, re-shaping and re-prioritisation of investments will: • Realise the full potential of investment in world-class facilities and programmes (Aurora, Diamond, ISIS-TS2, Astra, ILL, ESRF, LHC, ESO, ESA and CERN) • Deliver a world-leading science programme in particle physics, astronomy and nuclear physics • Deliver a world-leading science programme using synchrotron light, neutron beams and state of the art lasers • Enable state-of-the art technologies to be developed • Realise a step-change in economic impact through new technologies, spin-outs, skilled people and knowledge transfer

20. Science and Innovation Campuses • Inputs: investment, people and knowledge • Vision: an environment where new approaches to research, innovation and learning will attract organisations from both the UK and overseas to collaborate • Output: high economic return to the UK, important new skills and an improved international profile. • Many stakeholders, many activities, huge potential return to the UK.

21. Campuses – Economic Impact • Major new UK international-class critical mass model • for driving knowledge economy much more effectively • Major dynamo for further UK economic growth • Major new magnet & focus for UK and International Investment • New UK Mixed-economy value-add • RCs, Universities, OGDs, Private sector • Ultra-high technology Corporates and startups • 29 already at DSIC since April 05 - growth only limited by buildings • Major expansion of new UK high-tech jobs (10,000 each campus) • Major new UK Centre for High-Tech Skills Training & Outreach • In-built state-of-the-art S&T refresh mechanism • Major mechanism for delivery of key Government and other new CSR07 objectives • Energy, Sustainable Environment, Homeland Security

22. STFC Science and Innovation Campuses Vision Inputs Outputs • Major contributor to UK’s renowned scientific and hi-tech skills base. • Focus for science- innovation linked projects providing new collaborative approaches to research, innovation and learning. • Prime location for international R&D, major new facility investment, and a key attractor for overseas researchers • Co-location of small, medium & large public and private organisations • Scientific and hi-tech commercial cluster in its own right • Environment in which scientists from a wide range of disciplines work in a mutually supportive and cohesive manner • High quality, sustainable environment employing best practice in imaginative and environmentally sensitive design International recognition for UK in both public and private sector arenas – inward investment clearly evident Public investment in facilities and science programmes (STFC £550M, RCs, OGDs) Increased use of major facilities by industry (currently ~5%) Co-location of HEI sci & tech programmes (e.g. Cockcroft, Research Complex, SuperSTEM, Oxford nmr) Increased numbers of pub-private partnerships leading to joint patents, spin-outs Strategic partner capital investment (JV private partner, RDAs, UKAEA) Large facilities emerge as a procurement opportunity for UK businesses, leading to additional co-location of industry STFC Wider Access deliver programme to industry – technical sales team recruited Collaborative training and development initiatives leading to greater pool of skilled scientists, engineers, technicians and entrepreneurs International public and private inward investment (e.g. £50m RIKEN investment in RAL) Whole industry lifecycle represented on campus (SME to blue chip) – 50% footprint? SIC masterplans congruent with STFC plans and regional planning strategies Increased number of international scientists working at the campuses

23. Impact of STFC core programmes – to be filled in?? Impacts