In 2023, indirect government support through R&D tax incentives in the UK was valued at 7.05 billion pounds sterling. Forecasted data for 2024 through 2028 shows a steady year-on-year increase, reaching 7.78 billion pounds sterling by 2028. This indicates a compound annual growth rate (CAGR) of approximately 2.6% over this period. The forecast suggests consistent growth, reflecting the government’s ongoing commitment to supporting innovation through financial incentives.

Future trends to watch for:

The impact of policy changes on R&D spending and tax incentive effectiveness.
How economic conditions may influence both businesses' capacity to invest in R&D and government support measures.
The potential for expanded eligibility criteria or increased rates to further stimulate R&D activities.