Question 1

How do R&D tax credits work?

Accepted Answer

For accounting periods starting on or after 1 April 2024, companies claim R&D tax relief through two schemes, HMRC's guidance on the merged scheme and ERIS explains. The merged R&D expenditure credit pays 20% of qualifying costs as a taxable credit. Enhanced R&D intensive support (ERIS) lets loss-making small and medium-sized companies that spend at least 30% of their costs on R&D deduct 186% of qualifying costs and claim a payable credit worth up to 14.5% of the surrenderable loss. Projects must meet the tax definition of R&D. Some companies must tell HMRC in advance that they plan to claim, and claims need extra supporting information, as set out in claiming R&D tax relief . The credit cannot exceed a cap linked to the company's PAYE and National Insurance bill unless an exemption applies. For costs and claim numbers, see what R&D tax credits cost .

Question 2

What is UKRI and how is it funded?

Accepted Answer

UK Research and Innovation (UKRI) is the main public funder of research and innovation in the UK. It was launched in April 2018 as a non-departmental public body and brings together seven research councils, Research England and Innovate UK, its about page says. The councils are AHRC, BBSRC, ESRC, EPSRC, MRC, NERC and STFC. UKRI is funded by government. The government's R&D plans allocate it £9.2 billion in 2026/27, rising to nearly £10.0 billion in 2029/30, or £38.6 billion over four years. UKRI's budget page explains how the Secretary of State sets its overall allocation and the split between councils. UKRI's website, updated in August 2026, names the Department for Business, Innovation, Science and Trade as its sponsor department; earlier documents refer to DSIT.

Question 3

Does the UK Space Agency still exist?

Accepted Answer

The UK Space Agency merged into the Department for Science, Innovation and Technology on 1 April 2026, GOV.UK's UK Space Agency information page says. The page still lists UK Space Agency funding calls, careers information and educational resources. The government's R&D plans allocate £679 million to UK Space Agency programmes in 2026/27, rising to £720 million in 2029/30. Licensing of spaceflight from the UK is a separate job carried out by the Civil Aviation Authority . Claims about UK space spending may mean the agency budget, the UK's subscription to the European Space Agency, or the whole space industry, which are different amounts. For the sector's size, see the UK space industry .

Question 4

Is the UK part of Horizon Europe?

Accepted Answer

Yes. The UK has been associated to Horizon Europe, the EU's research and innovation programme, since 1 January 2024, under an agreement signed on 4 December 2023, the government's association explainer says. Associated Country status gives UK applicants the same rights as EU participants, with very limited exceptions, from the 2024 work programme onwards. The UK also takes part in Copernicus, the EU's Earth observation programme. The government's R&D plans set aside £2.1 billion in 2026/27 for EU programmes, including Horizon Europe and Copernicus, and provide for the first two years of their successor programmes. The budget line also covers the wind-down of the earlier UK Guarantee scheme, and the UK's contribution can be adjusted under an automatic correction mechanism, so annual costs vary.

Question 5

How big is the UK space industry?

Accepted Answer

The UK space industry had income of £18.6 billion in 2022/23 and contributed £7.2 billion directly to GDP, according to the Size and Health of the UK Space Industry 2024 report, produced by London Economics for the UK Space Agency and published in July 2025. It directly employed an estimated 55,550 full-time equivalent staff in 1,907 organisations, and supported a further 81,400 jobs in the supply chain. Exports brought in £5.8 billion, about 31% of income, and the sector spent £1.1 billion on R&D. Satellite TV broadcasting accounted for 48% of income. The report says income fell in real terms that year, partly because of high inflation and a change in method. London, the South East and Scotland account for the largest shares of space jobs.

Question 6

How much does the UK spend on research and development?

Accepted Answer

R&D performed in the UK cost £79.4 billion in 2024, up £3.6 billion on 2023, according to the ONS bulletin on gross domestic expenditure on research and development , released on 7 August 2026. That was 2.71% of GDP. Businesses performed £55.6 billion (70%), universities £17.9 billion (23%), government bodies £4.7 billion (6%) and private non-profit organisations £1.2 billion. The ONS business R&D release shows London had the largest share of business R&D, at £13.3 billion, followed by the East of England and the South East. These figures show who carries out the R&D; who pays for it is a separate breakdown in the ONS data. The release covers 2022 onwards, after a change in methods, and business R&D figures before 2022 are not directly comparable below UK level.

Question 7

How much does the government spend on science and R&D?

Accepted Answer

The Department for Science, Innovation and Technology planned an R&D budget of £58.5 billion over the four years 2026/27 to 2029/30, according to its R&D plans published on 30 October 2025. That includes £9.2 billion for UK Research and Innovation in 2026/27, rising to nearly £10.0 billion in 2029/30, and £2.1 billion in 2026/27 for EU programmes such as Horizon Europe. Other planned allocations for 2026/27 include £679 million for the UK Space Agency, £327 million for Met Office R&D and £220 million for the Advanced Research and Invention Agency (ARIA). Other departments, including defence and health, fund R&D from their own budgets. The department says the plans are a guide and will not match final spending. Total R&D across the economy is a different measure, covered in UK R&D spending .

Question 8

How many patents are filed in the UK each year?

Accepted Answer

The UK Intellectual Property Office received 22,701 patent applications in 2025, up 19% on 2024, and granted 5,522 patents, down 32%, according to its facts and figures for 2025 , published on 30 July 2026. The IPO says the drop in grants, to the lowest level since 2015, was mainly due to the introduction of its new patents service. Trade mark applications passed 200,000 for the first time, at 203,194. The United States was the largest source of patent applications from outside the UK. Monthly counts are in the IPO's monthly statistics . The IPO warns that its figures should not be used alone as a measure of UK innovation. They cover patents filed directly at the IPO and through the international route, not every patent that applies in the UK.

Question 9

How does UK R&D spending compare with other countries?

Accepted Answer

The UK spent 2.71% of GDP on R&D in 2024, according to the ONS . The OECD's Main Science and Technology Indicators put the OECD-wide figure for 2024 at an estimated 2.72%, against 3.44% in the United States, 3.13% in Germany, 3.62% in Japan, 5.13% in South Korea, 2.18% in France and an estimated 2.13% for the EU. On this measure the UK is close to the OECD average, above France and the EU but below the most R&D-intensive economies. The OECD figures use the same Frascati Manual definitions as the ONS. Many recent OECD values are provisional or estimates, and the OECD may hold an older UK figure than the latest ONS release. Compare the same year and source; our OECD data guide explains how. For a wider index, see the UK innovation ranking .

Question 10

How long does a UK patent last and how much does it cost?

Accepted Answer

A UK patent lasts up to 20 years from filing, as long as it is renewed every year from the fourth anniversary, GOV.UK's guide to applying for a patent explains. On 13 October 2026, renewal fees started at £90 for the fifth year and rose to £810 for the 20th. Getting a filing date online is free. Applying online for a filing date, search and examination together costs £405, plus £27 for each claim over 25 and £13 for each page of description over 35. The application is usually published about 18 months after filing, and examination must be requested. These are Intellectual Property Office fees only; patent attorney costs are separate. A UK patent does not protect an invention abroad.

Question 11

How much do R&D tax credits cost?

Accepted Answer

Companies claimed an estimated £8.2 billion of R&D tax relief for 2024 to 2025, up 5% on the year, on £51.0 billion of R&D spending, according to HMRC's R&D tax credits statistics published on 29 September 2026. The number of claims fell 17% to an estimated 40,325, mainly because fewer small companies claimed. Relief through the expenditure credit schemes rose 29% to £5.9 billion, while the small company and ERIS schemes fell 29% to £2.3 billion. A small share of claims dominates: 6% of claims made up 69% of the value. Companies registered in London made 24% of claims and 30% of the amount claimed. The latest year is provisional because companies can claim after the year ends. Registered office is not always where the R&D takes place. More HMRC tables are covered in our HMRC statistics guide .

Question 12

How does the UK rank for innovation?

Accepted Answer

The UK ranked sixth in the 2026 Global Innovation Index, published by the World Intellectual Property Organization, a UN agency, behind Switzerland, Sweden, the United States, South Korea and Singapore. The ranking is on WIPO's Global Innovation Index 2026 page; the UK was also sixth in 2025 . The index covers around 140 economies and tracks investment, technological progress, adoption of technology and its social and economic effects. WIPO also ranks innovation clusters, and London was in the global top ten in 2025. It is a composite index whose method and indicators change between editions, so year-to-year moves can reflect the method. For single measures, see R&D spending compared with other countries .

Science, research and space: your questions answered