UK Universities Urged to 'Mend, Not Build' Labs as Funding Shifts to AI Priorities

Research England's Directive: A Call to 'Mend, Not Build'

Research England, the body responsible for funding universities and colleges in England, has issued a clear directive to vice-chancellors: prioritise the maintenance of existing research facilities over constructing new ones. In a letter dated 10 March 2026, executive director Jessica Corner emphasised that infrastructure funding should support the upkeep of buildings, estates, and equipment rather than new builds. This 'mend, not build' approach comes amid tightening budgets for non-digital research labs, forcing institutions to rethink their capital spending strategies.

The guidance urges universities to collaborate on sharing equipment and facilities, and even consider decommissioning underused assets to prevent capability gaps. This shift aligns with a broader UK Research and Innovation (UKRI) strategy to optimise resources in a landscape where overall research capital budgets are rising modestly, but unevenly distributed.

Budget Breakdown: Non-Digital Infrastructure Faces Steep Declines

Overall research capital funding through Research England is projected to increase from £1.384 billion in 2026-27 to £1.552 billion by 2029-30, a 12 per cent uplift. However, this masks significant disparities. Non-digital research infrastructure spending, which covers traditional physical labs in fields like chemistry, biology, and physics, will drop sharply from £1.060 billion this year to £775 million in 2028-29—a 26 per cent reduction. Even with a partial rebound to £845 million in 2029-30, it remains 20 per cent below current levels.

Key streams affected include the Research Councils' World Class Labs programme, falling from £503 million this year to £286 million in 2028-29, and mainstream Research Capital Infrastructure Funding (RCIF), declining from £174 million to £124 million by 2029-30. From 2027-28, RCIF distribution will be reformed to further emphasise sustainability over expansion.

Digital Surge: AI and Supercomputing Claim the Lion's Share

In stark contrast, digital infrastructure funding is set to more than double, from £324 million in 2026-27 to £707 million in 2029-30. This reflects massive national commitments, including over £2 billion for supercomputing over four years, highlighted by the £750 million Next National Supercomputing Service hosted at the University of Edinburgh. The UK is also allocating £1.6 billion to artificial intelligence (AI)-related research in the same period, with a recent £40 million call from the Engineering and Physical Sciences Research Council (EPSRC).

UKRI's chief of investment planning, Dan Shah, notes that these investments extend beyond pure AI, enabling computational solutions across disciplines—from climate modelling in environmental science to drug discovery in biomedicine.

Drivers Behind the Strategic Pivot

The funding reorientation stems from UKRI's focus on high-impact areas where the UK can lead globally. Supercomputing and AI are seen as transformative for economic growth, healthcare, and transport. A forthcoming review of institutional research infrastructure revealed many existing labs are 'not in great condition', justifying a maintenance-first approach. External pressures, such as rising energy costs and unfavourable exchange rates, have already prompted £162 million in savings at the Science and Technology Facilities Council (STFC) by 2029-30.

This aligns with the government's post-16 education White Paper, promoting efficient resource use amid fiscal constraints. While UKRI's total budget rises towards £10 billion annually by 2030, 'hard decisions' prioritise outcomes over inputs.

The State of University Labs: Maintenance Backlog Exposed

Many UK university labs suffer from deferred maintenance, with outdated equipment hindering cutting-edge work. Corner's letter highlights this crisis, directing funds to address immediate needs like equipment upgrades and building repairs. Universities must now balance prestige projects with essential upkeep, potentially delaying expansions in high-overhead fields like experimental physics or materials science.

Disciplinary Impacts: Physics and Physical Sciences Hit Hardest

Physical sciences bear the brunt. STFC cuts threaten particle physics, astronomy, and nuclear physics projects, with research groups facing up to 60 per cent reductions. Physicists warn of a 'catastrophic' loss of expertise, potentially driving talent overseas. Chemistry and biology labs, reliant on specialised equipment, face similar squeezes as World Class Labs funding tapers.

• Particle accelerators and telescopes: Deferred upgrades risk UK competitiveness in global collaborations like CERN.
• Materials testing facilities: Slower innovation in batteries and semiconductors.
• Biological wet labs: Equipment sharing becomes critical to sustain throughput.

Despite this, core Quality-related Research (QR) funding sees £425 million increases by 2029-30, offering some flexibility for targeted investments.

Voices from the Sector: Alarm and Adaptation

Academics express concern over long-term damage. The Institute of Physics called STFC changes a 'devastrophic blow', while unions highlight risks to early-career researchers. Vice-chancellors acknowledge the need for realism, with some eyeing partnerships. Career advice for postdocs now stresses adaptability amid shifting priorities.

Optimists point to AI's cross-disciplinary potential, like accelerating simulations in traditional labs.

Case Studies: Edinburgh's Supercomputing Win and STFC Struggles

The University of Edinburgh benefits from hosting the Next National Supercomputing Service, bolstering its AI and data science profile. Conversely, STFC facilities grapple with £280 million in shelved projects, including a national user facility for direct detection. Universities like Southampton and Manchester, strong in physics, report planning for 30 per cent average cuts, prompting resource-sharing consortia.

Proposed Solutions: Collaboration and Efficiency

Research England advocates:

• Joint equipment pools across institutions.
• Decommissioning redundant facilities.
• Competitive calls for collaborative infrastructure.
• Integrating AI to reduce physical lab demands, e.g., virtual simulations.

UKRI's Broader Reforms: From Buckets to Outcomes

UKRI's £8.9 billion curiosity-driven pot includes QR growth, but non-recurrent funds phase out. Infrastructure totals £2.069 billion over the period, with RCIF reforms prioritising upkeep. The £40 million Fundamental AI Research Lab, launching May 2026, exemplifies targeted excellence.

UKRI budget allocations overview details these changes.

Future Outlook: Recovery, Reviews, and Risks

Non-digital funding partially recovers post-2028, pending infrastructure review outcomes. Success hinges on effective sharing and AI integration. Risks include brain drain and stalled discoveries, but opportunities arise in hybrid models blending physical and computational research.

For academics navigating this, optimise your CV for interdisciplinary roles.

Career Implications and Actionable Advice

Researchers face tougher grant landscapes; diversify skills in AI tools. Institutions should audit labs now. Job seekers: Target postdoc opportunities in supercomputing hubs. Rate your professors and share experiences amid changes.

This pivot positions UK higher education for AI leadership, but safeguards traditional strengths essential. Explore university jobs resilient to shifts.

Photo by Johnny Briggs on Unsplash