The UK has seen a record-breaking jump in new tech start-ups, new research finds, with London taking the wheel as the nation’s influential tech hub.
The number of new tech companies in the UK jumped 22 per cent to 51,017 last year, according to analysis by audit, tax and consulting firm RSM UK, up from 41,972 the year prior.
Ben Bilsland, partner and technology industry senior analyst at RSM UK, said the capital’s strength as a global-leading tech hub is being “reflected” across the UK.
London weighed in with a record increase in tech start-ups last year, up 26 per cent. However, East of England came in with the highest jump, up 31 per cent.
Bilsland said: “Whilst it’s impossible to ignore AI as a driving force behind UK tech incorporations, especially for businesses working in data, there will be other factors to consider.
“London projects itself as a leading global authority in tech. That strength is reflected across the UK by a vibrant and energetic sector that consistently supports early-stage businesses.”
The wider sector has been “marked by layoffs,” Bilsland said, suggesting that workers might have gone on from their previous roles in tech firms to start their own.
The tech start-up boom comes amid an ongoing digital push for Britain’s SMEs, with new government-backed platforms and training programmes on the rise.
Bilsland said a focus toward more industry support is needed if “the trend is to continue”.
He added: “The government has an important role to play if this trend is to continue. Making valuable resources, including AI compute, accessible for universities and early-stage entrepreneurs is critical.
“Funding and policy changes, including innovation reliefs, that ensure a world-class tech workforce are crucial both in terms aiding education and skilled immigration.
“For those businesses working in AI, clarity on future regulation will assist the ability to forward-plan.”
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