Government Urged to Overhaul UK Visa Policies and Investment Strategy for Science Sector

The science and technology sectors in the UK are presently at a very dramatic moment, or so a new report from the House of Lords that, the country's failure to retain and grow tangible signs of potentially promising companies has reached ‘crisis point.’  Troublingly, the report also revealed a sad trend: a string of high-potential science and tech companies in the UK are moving out to scale or relocating their activities abroad. Among the highlights of this unfortunate trend are: Oxford Ionics, a quantum computing firm bought by a US company for $1 billion, and OrganOx, a medical technology spin-out from Oxford, sold to a Japan-based buyer for $1.5 billion.

The committee affirms that without emergency radical reform, the UK will suffer major economic damage in terms of its R&D efforts. The report reiterates that long-standing issues of fragmented public investment and fairly restrictive UK visa regulations have very much prevented capturing opportunities for technological and economic growth. It calls for reforms to UK immigration rules to attract and retain talent globally, particularly in science and innovation. Revisions to the Scale-up Visa UK, and other pathways that sustain skilled migration in the UK, are among these.

In the list of recommendations to address these challenges, the committee proposes the establishment of a National Council for Science, Technology and Growth, which would enhance coordination reforms and benefits towards the scale-up of UK-based firms. It equally proposes that all public investment agencies, such as Innovate UK, the British Business Bank and the National Wealth Fund, should work more closely and, in some cases, even consider mergers towards better competitiveness against large overseas investors. In addition, the report calls for public procurement reforms, including a recommendation to ring-fence a fixed percentage of government spending to innovative UK-based SMEs.

In addition to all this, the report speaks to more flexible career pathways between academia, industry, and government. It also contended that improved pay, incentives, and mobility would help stem the talent challenge facing the UK in the science sector while strengthening collaboration across sectors. The committee also advises the government to avoid using measures like levying international students to boost revenues since this might, in effect, cause greater damage to the attraction of UK global researchers.

According to committee chair Robert Mair, the poor productivity and stagnant pay witnessed in the UK since the financial crisis of 2008 have pointed to a deeper problem in the ability of the country to retain and harness the economic value of its science and technology innovation. Major companies such as Deliveroo and Wise were, as the inquiry progressed, expanding overseas, while AstraZeneca was mulling relocation. There begin interesting questions as to why science companies are leaving the UK by 2025 and about how UK visa rules affect technology and science firms.

In its industrial strategy, the government presents plans to make the British location one of the top three hubs where tech businesses can scale up, and it also plans to produce the first $1 trillion tech company by 2035. In such decrees, however, the report sadly concludes that the nation is going contrary to that objective at this moment. In the absence of decisive leadership and a coordinated way forward, there is a real possibility that the UK's innovation race will fall increasingly further behind on the global stage.

Editor’s note

The latest report from the House of Lords serves as a stark reminder that the UK is at a critical juncture concerning its science and technology sectors. While endowed with a strong research base and a reputation for innovation, the country keeps losing promising companies to overseas markets. Such a pattern, spotlighted by the recent departures from Oxford Ionics and OrganOx, speaks to deep-seated structural issues that need to be resolved as a matter of urgency. The most revealing aspect of the report is surely the articulation that there are links between fragmented public investment, restrictive UK visa policies, and the domestic inability to scale science and tech firms. Without meaningful reform, particularly with respect to channels of skilled migration and the coordination of investment in their growth, the fruits of research and development will continue to drift away. The proposed National Council for Science, Technology, and Growth, which stands alongside reforms to procurement and career mobility, offers a practical way to reverse this trend. That said, it is important to understand that the UK is in a race globally; the UK must amplify its ambition, but it even has to act. With bold targets set alongside the government’s industrial strategy, reality shows that the gap between aspiration and reality is widening. 

Skoobuzz highlights that if the UK is to retain international talent and spur new innovation-led growth, it must step out of rhetoric and create joined-up long-term solutions commensurate with the scale of the challenge.

FAQs

1. Why are science companies leaving the UK in 2025?

The House of Lords report highlights a growing trend of high-potential science and tech companies relocating abroad due to limited scale-up opportunities, fragmented public investment, and restrictive UK visa policies. Examples include Oxford Ionics and OrganOx, both sold to overseas buyers in 2025.

2. What does the House of Lords report say about the UK innovation economy?

The report warns that the UK’s failure to retain and grow science and technology firms has reached a ‘crisis point’. Without urgent reform, the country risks losing the economic benefits of its research and development efforts and falling behind in global innovation.

3. How do UK visa rules impact technology and science firms?

Restrictive UK immigration rules, particularly around skilled migration, are cited as a barrier to attracting global talent. The report calls for reforms to UK visa policies, including improvements to the Scale-up Visa UK, to support innovation and retain international scientists and entrepreneurs.

4. What is the Scale-up Visa UK, and how does it support innovation?

The Scale-up Visa UK is designed to help high-growth companies recruit skilled professionals from abroad. The House of Lords recommends revising this visa route to make it more effective in supporting science and tech firms that need global talent to scale.

5. What changes are expected in the UK immigration policy for skilled workers?

The report urges the government to reform UK immigration rules to better support skilled migration in the UK. This includes simplifying visa processes and removing barriers that prevent scientists, researchers, and entrepreneurs from contributing to the UK economy.

6. What is the proposed National Council for Science, Technology and Growth?

The committee recommends establishing a National Council to coordinate reforms and drive growth in the science and technology sectors. This body would help align policy, investment, and talent strategies to support UK-based innovation.

7. How should UK public investment bodies respond?

The report suggests that agencies such as Innovate UK, the British Business Bank, and the National Wealth Fund should collaborate more closely—or even merge—to compete with large overseas investors and better support UK science and tech companies.

8. What role does public procurement play in supporting innovation?

The committee proposes reforming public procurement by mandating that a fixed percentage of government department budgets be spent with innovative UK-based SMEs. This would help stimulate domestic growth and support emerging technologies.

9. What are the recommendations for career mobility in the science sector?

To address the UK talent shortage in the science sector, the report calls for more flexible career pathways between academia, industry, and government. Improved pay, incentives, and mobility would help retain skilled professionals and foster collaboration.

10. How is the UK’s university research base affected?

The report warns that the UK’s university research base is under threat due to the higher education funding crisis. It advises the government to avoid measures like levying international students, which could harm the UK’s ability to attract global researchers.