In the past NHS R&D funding has been allocated to some 253 individual NHS organisations. The historic allocations did not generally reflect the current level, quality and relevance of the research activity. A phased implementation of the new funding schemes set out in the Government's health research strategy, Best Research for Best Health, began in April 2006, and will be completed in 3 years. We are allocating transitional R&D funding to all previous recipients of NHS R&D Support Funding (“Budget 1”) at reducing levels over this period to enable the NHS to plan for the effects of transition. At the same time we are awarding and allocating an increasing amount of NHS research funding through the new schemes for agreed purposes. It is therefore, likely that funding levels for individual NHS organisations will change over the transition period.
The transitional funding allocations for 2007/08 are listed below. The allocations include the full inflation uplift of 4%. The allocations are higher than the indicative figures originally given in the transitional funding agreements. This is in line with our stated intention that we will not release money from transitional funding unless and until it is required for the new NIHR schemes, and does not reflect any change in our published transition plan for the implementation of Best Research for Best Health.