The forecast for labor costs in high 2-digit R&D intensive activities in the UK shows a consistent upward trend from 2024, beginning at £26.93 billion, increasing to £29.21 billion by 2028. This trajectory marks an annual growth rate of about 2% year-on-year during this period.

In 2023, the actual labor cost stood at approximately the value of 2024, indicating a stable base for the subsequent forecasted growth. The Compound Annual Growth Rate (CAGR) over the five years from 2023 to 2028 suggests a steady increase in costs, taking into account inflation, wage growth, and expansion in R&D activities.

Key trends to watch for include:

Increased investment in technology sectors due to the growing emphasis on digital transformation.
Potential policy changes influencing R&D tax incentives or labor regulations.
Global economic fluctuations that might impact funding and investment priorities.