As of 2023, the UK government budget for R&D and tax incentive support for business R&D is at 24 billion pounds sterling. Forecasts indicate a consistent increase through 2028, with expected values at 25.81 billion in 2024, rising to 30.84 billion by 2028. This represents a steady year-on-year growth of 4.95% from 2024 to 2025, followed by a 4.65% increase from 2025 to 2026, and a further 4.44% rise from 2026 to 2027. The compound annual growth rate (CAGR) from 2024 to 2028 is approximately 4.56%.
Future trends to watch for:
- Government policies enhancing R&D funding mechanisms.
- Impact of economic conditions on budget allocations for R&D.
- Shifts in focus areas within business R&D tax incentives.
- Integration of sustainable and digital transformations in R&D initiatives.
