UK Construction Industry R&D Spending Jumps 11.5% to Record High

R&D SPENDING in the UK construction industry has jumped 11.5% annually to a new record high, analysis of the latest ONS data by R&D tax relief specialists Catax shows.

Total construction sector spending on R&D rose to £417m last year, an increase of £43m from the £374m recorded a year earlier, according to data released on Friday. The industry now employs 6,000 people directly involved in R&D, however, the rate of growth in R&D spending has slowed from the 16.9% rise recorded in 2018.

Technological advances

Uncertainty surrounds what impact the Covid-19 pandemic will have on the level of investment this year, says Catex. However, the construction sector continues to pursue a range of technological advances, not least progress in Modern Methods of Construction (MMC) and environmental performance.

The amount that UK businesses across all sectors have invested in R&D continues to grow, rising 3.3% to £25.9bn but this was the slowest rate of growth since 2012.

Mark Tighe, Chief Executive of R&D Tax Relief at Catax, said, “The construction industry continues to harness technological advances that will transform the sector over the next decade. It’s certain that the total amount spent on R&D will only increase across the sector but it remains to be seen what impact the coronavirus will have on spending this year.

“Typically we take a very long term view on R&D, laying the ground work for the future. But the disruption to the economy and working life this year has been so dramatic that a dent in the industry’s track record of consistent growth in R&D spending would surprise no one.”