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Data from the Higher Education Statistics Agency show that universities in the UK spent £4.21 billion on research grants and contracts in 2013-14, up from £3.96bn in 2012-13.
Spending by UK universities increased in all seven categories of expenditure analysed by HESA, according to figures published by the agency on 29 April.
Administration and central services spending increased by 8.6 per cent to £4.72bn, academic services by 5.3 per cent to £2.47bn, premises costs by 4.9 per cent to £3.4bn, academic departments by 4.6 per cent to £11.39bn, residences and catering by 4.5 per cent to £1.5bn and in other areas by 0.6 per cent to £1.73 bn.