New figures released today show that business expenditure on research and development (R&D) in the UK is recovering after several years of decline. In real terms, spending increased by 2.3% to £55.6 billion in 2024 compared to 2023. The rebound follows two consecutive years of falling private R&D spending.

However, the National Centre for Universities and Business (NCUB) cautions that this rebound does not yet represent sustained growth. Over the full four-year period since 2021, cumulative growth in business R&D is close to zero, meaning much of the 2024 increase simply offsets earlier losses.

Dr. Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB), said: "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. This recovery is an early signal of renewed confidence, not a full turnaround. Continued commitment from government and industry will be essential to sustain it."

Marshall continued: "Businesses are clearly willing to invest when conditions are stable and predictable. Our Taskforce on Business-Led Innovation has consistently heard that uncertainty, complexity and short-term policy shifts have held back investment decisions. 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."

- ENDS -

NOTES TO EDITORS

About the NCUB

The National Centre for Universities and Business (NCUB) represents a collective voice of leaders across higher education and business and aims to tackle issues of shared interest. The NCUB is an independent and not-for-profit membership organisation that promotes, develops and supports university-business collaboration across the UK. The organisation was originally established in 1986, and NCUB was formed in 2013.

Follow us on LinkedIn

To keep up to date with our latest news, follow us on LinkedIn at linkedin.com/company/the-national-centre-for-universities-and-business

Available for interviews

NCUB Chief Executive Joe Marshall and Director of Policy, Engagement and External Affairs Rosalind Gill are both available for comment and interview.

Press contact

Isabella Hammond

Communications and Public Affairs Manager

National Centre for Universities and Business (NCUB)

E: isabella.hammond@ncub.co.uk

T: +442039281043

M: 07438774177