The UK government appears to be under the impression that it should preferentially fund scientific research that has direct economic value. This, of course, is rubbish. Industry should preferentially fund scientific research that has direct economic value, because, well, it has direct economic value. The government should fund scientific research that pushes the frontiers of human knowledge, regardless of the direct economic impact.
The Universities and Colleges Union (UCU) is collecting signatures for their Stand up for research campaign, related to this very issue. Follow the link to sign up...