R&D spending in construction sector rose 7.9% last year, despite the pandemic

Rising expenditure

Construction sector R&D spending hit £368m last year, according to latest ONS data

R&D spending in the construction sector defied expectations with an 8% rise last year despite the pandemic, analysis of latest ONS data by business tax relief consultancy Catax shows.

The industry spent £368m on R&D in 2020, a rise of 7.9% from the £341m invested in 2019. The increase came despite widespread disruption caused by the Covid-19 pandemic, which had led to fears that levels of innovation could suffer.

It also represents a record high. Over the past decade, R&D spending in the construction sector has grown 257.3%, up from £103m in 2010.

The ONS published its Q4 statistics for R&D spending yesterday (Wed) providing a full year picture for different industries.

The construction sector’s performance was significantly better than the performance of UK industry as a whole. Total R&D spending by UK businesses rose 5.09% to £38.4bn last year.

UK GDP in 2020 was 9.8% down on an annual basis according to the ONS2 — the worst performance since 1709.

Related links:



modbs tv logo

‘Red tape scrapping is welcome – but more policy changes are needed’

The CEO of heat pump manufacturer Aira UK has said the government’s new proposals to scrap planning red tape for the installation of heat pumps in the UK will be a big breakthrough for the industry and consumers – but more policy changes are needed.

New procurement rules for NHS suppliers

New procurement rules mean NHS suppliers will need to demonstrate their green credentials so the NHS can achieve its target of becoming net zero for directly-controlled emissions by 2040, with an ambition to reach an 80% reduction in its carbon emissions between 2028 to 2032.