UK business R&D rebounds in 2024, but recovery remains fragile, warns NCUB

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 £55.6bn 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.”