In his Budget speech in March, the Chancellor of the Exchequer announced major reforms to the way research is assessed and funded. He announced that the Research Assessment Exercise (RAE) would be discontinued, and in an associated document (‘Science and Innovation Investment Framework: Next Steps’) a consultation was promised on the Government’s preferred option: replacing the RAE with performance indicators based on research funding (‘metrics’). The Government has now published its consultation proposals under the title ‘Reform of Higher Education Research Assessment and Funding’. This report is HEPI’s initial response to the Government’s proposals.