Part 3: Research
This Act streamlines the current research and innovation landscape by bringing together the nine existing research and innovation funders, including the seven research councils, Innovate UK and the research and knowledge exchange functions currently performed by HEFCE, whilst preserving the strengths of individual disciplines and providing legislative protection for dual support funding of research.
	In December 2014 the Government published "Our Plan for Growth: Science and Innovation", a joint HM Treasury and Department for Business, Innovation and Skills strategy to support United Kingdom research and innovation. Linked to the strategy was a commission to Sir Paul Nurse, then the President of the Royal Society, to undertake a review with the research councils to: "look at how [the] councils can evolve to support research in the most effective ways by drawing on a range of evidence, including international comparisons and the views of the scientific and business communities".
	The 2015 Conservative Manifesto pledged to make use of Sir Paul’s findings which were published in November 2015. At the 2015 Spending Review Government reiterated its manifesto commitment to support the Nurse recommendations and indicated it would consider the inclusion of Innovate UK. A consultation on this was launched in February 2016.
	These initiatives, complemented by the November 2015 Green Paper consultation form the basis of Part 3 of this Act, which is based on the following key principles:
the aim of strengthening strategic thinking on cross cutting priorities and developing a more agile and responsive research and innovation funding system;
the aim of retaining the world class strengths of the current system, including the Haldane principle, the dual support system and Innovate UK’s distinct business facing focus;
the importance of subsidiarity, with decisions needing to be taken at the lowest effective level and leaders in particular fields of activity given full responsibility for decisions in their areas; and
the aim of reducing bureaucracy, freeing up research and innovation leaders to focus on strategic decision-making.
	This Act provides for the formation of a single executive non-departmental public body operating at arm’s length from Government. As outlined in the Government’s White Paper "Success as a Knowledge Economy: Teaching Excellence, Social Mobility & Student Choice", published on 16 May 2016, this new body, UKRI, brings together the seven research councils and integrate Innovate UK, while retaining Innovate UK’s distinctive business focus and separate funding stream. In addition, it integrates the research and knowledge exchange functions currently performed by HEFCE, maintaining its hypothecated funding streams and protections for the dual support system - in England.
	This Act provides for nine "Councils" within UKRI – seven of which will represent the Research Councils - which will have autonomy on scientific, innovation and research decision making, with delegated budgets. This Act provides for UKRI to delegate functions to the Councils, with each Council responsible for the strategic leadership and research and scientific decisions in their area. Councils are led by Executive Chairs, appointed by Ministers on the advice of UKRI’s board and reporting to UKRI’s CEO. The Executive Chairs will each have significant expertise in their particular fields of activity (e.g. medical research, innovation). The Executive Chair will discharge the implementation of their Council’s decisions on a day-to-day basis. UKRI’s board will have responsibility for leading overall strategic direction and cross-cutting decision making, including managing funds with cross-disciplinary impact.