{"id":1852,"date":"2025-07-22T13:58:46","date_gmt":"2025-07-22T13:58:46","guid":{"rendered":""},"modified":"2026-07-26T16:23:53","modified_gmt":"2026-07-26T14:23:53","slug":"how-rd-tax-credits-can-power-the-manufacturing-industrys-digital-future","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/how-rd-tax-credits-can-power-the-manufacturing-industrys-digital-future\/","title":{"rendered":"How R&D Tax Credits can power the manufacturing industry\u2019s digital future"},"content":{"rendered":"\t\t
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Successive governments have been desperate for the UK\u2019s manufacturing industry to modernise. Modernisation would offer a huge boost to the UK\u2019s productivity, driving much-needed growth and economic prosperity, but also lead to more efficient, eco-friendly factories, which will be crucial for achieving our net-zero targets. Despite the importance of the industry to both the economy and for driving innovation in the UK, growth in terms of the total R&D expenditure within manufacturing has been broadly stagnant for the last five years of reported statistics. In fact, for the 2022-23 financial year, R&D expenditure in manufacturing was still lower than spending in both the 2018-19 and 2019-20:<\/p>\n\n\n\n
While more modernisation is needed, manufacturing is still one of the UK\u2019s most important industries. A recent research briefing for the government<\/a> reported that in late 2024 manufacturing industries accounted for 8.6% off the UK\u2019s total economic output as well as 8.0% of jobs.
The manufacturing industry is also a huge driver of UK innovation. Manufacturers make 24% of all R&D Tax Credits claims, accounting for 22% of the total amount of relief claimed in the UK \u2013 that\u2019s according to the government\u2019s Research and Development Tax Credits Statistics<\/a> report.<\/strong><\/p>\n\n\n\n