A record number of technology companies were incorporated in the North West in the second quarter of 2025, according to new analysis from professional services firm RSM UK.
RSM’s findings show a total of 1,111 new tech companies were established in the period, a 27% increase from the 877 incorporated in the same quarter last year. The number of tech incorporations also rose by 17% quarter-on-quarter, up from 948 in the first quarter of 2025.
The data indicates a nationwide trend, with all UK regions showing an increase on last year and nine out of the 12 regions recording their highest number of new tech incorporations since 2019.
Darren Griffin, head of technology for RSM in the North West, commented: “This surprising jump in new tech incorporations to a record high suggests that, despite the numerous headwinds, tech entrepreneurs and business leaders in the north west are getting used to dealing with an uncertain world. We’ve seen tech growth cool down over the last year, as businesses and investors delayed big decisions. It’s clear they’ve realised the uncertainty isn’t going away anytime soon, and may be the new norm, so now they are forging ahead and it will be interesting to see if this trend continues into Q3.”
Ben Bilsland, partner and head of technology industry at RSM UK, added: “Following very little for UK tech in the Autumn Budget, the government provided more detail on its Industrial Strategy and Digital and Technologies Sector Plan for tech in 2025. This added clarity will have been a boost to the sector, but significant investment is needed, and if economic uncertainty escalates, this will act as a roadblock to future tech growth. Increasing pressure on the UK government to address gaps in the budget will leave the tech industry feeling nervous about what tax measures might be introduced. Changes to capital gains tax will make business founders and investors cautious, with a direct impact on investment and exit decisions. Any adverse changes to the research and development scheme would likely send shockwaves through the tech industry, stifling innovation and growth.”
“The government will need to tread carefully to ensure the UK remains one of the best places in the world to start and grow a tech company, as the exit of our brightest businesses and talent overseas could cause long-lasting harm to the economy.”
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