Business spend on R&D improves for first time in years
30 Nov 2025
Company expenditure on research and development in the UK increased to £55.6 billion in 2024, according to new details published by the Office for National Statistics (ONS).
The National Centre for Universities and Business (NCUB) pointed out that this represented a rise of 2.3% over the previous year.
It also followed two years of falls in private R&D spending, which NCUB chief executive Dr Joe Marshall described as “an early signal of renewed confidence”.
But he warned that the latest news could not be interpreted as proof of a full turnaround or sustained improvement because cumulative growth over the four years since 2025 had been close to zero.
“It is encouraging to see business R&D spending picking up after two difficult years. But the recovery is fragile. When you look across the last four years, the rebound in 2024 only brings us back to where we were in 2021,” he cautioned.
“This recovery is an early signal of renewed confidence, not a full turnaround.”
In order to achieve more long-term improvement, he added, there would need to be evidence of continued commitment from industry but also the Government.
Businesses were willing to invest when conditions were stable and predictable said Marshall. However, the organisation’s Taskforce on Business-Led Innovation had been warned by firms that “uncertainty, complexity and short-term policy shifts” were a deterrent to investment.
Stated Marshall: “If the UK is to convert this tentative recovery into long-term growth, we need a clearer strategic focus, a simpler system, and greater consistency in the support landscape.”
