Spending on R&D hits a seven-year low

Expenditure on research and development (R&D) performed in the UK rose by £1.3bn (3.4%) to £38.5bn in 2019; but this was the lowest percentage growth since 2013 according to figures from the Office for National Statistics.

Most spending was in the business sector at £25.9bn (67% of the UK total) followed by the higher education sector at £9.1bn (24%).

The statistics reveal that total R&D expenditure represented 1.74% of gross domestic product (GDP) in 2019 although the long-term trend has been for very small growth over time with the value up from 1.59% in 2008 and 1.72% in 2018.

Funding of UK R&D from overseas increased by 4.1% to £5.6bn in 2019 compared with 2018; this was 0.8% higher than the peak in 2014 of £5.5bn.

Mark Tighe chief executive officer of R&D tax relief specialist Catax  said: ‘The government’s ability to hit its 2027...