The number of new technology companies established in the UK increased by almost 50 per cent in 2025 compared to five years ago, according to figures from consulting firm RSM UK, which is headquartered in London, and has offices in Gatwick, Cambridge, Chelmsford, Ipswich, Reading, and Southampton.
Last year, there were 56,615 new technology incorporations, representing a 17 per cent increase from the 48,518 recorded the previous year. This compares to 38,421 technology companies established five years ago.
RSM UK stated that nearly all regions recorded a record number of technology company incorporations last year. Businesses in Wales saw the highest growth, with a rise of 79 per cent, while incorporations in the West Midlands increased by 27 per cent. The figures suggest a level of underlying confidence in the sector despite various challenges.
The South East of England was the only area that did not reach record levels for new technology businesses. Figures rose by 11 per cent in London and 15 per cent across the region as a whole. RSM UK suggested that skills shortages have likely hindered growth in these areas.
RSM UK has called on the government to reduce obstacles to recruitment from abroad and to provide incentives for technology graduates from UK universities to stay in the country. This is intended to ensure businesses can access the skills and ideas required to expand. Despite economic uncertainty throughout 2025, technology business heads remain positive. Research indicates that 76 per cent of technology heads are confident their businesses will grow under the current government.
Georgie Bole, director at RSM UK, commented: “The tech industry is highly attractive to investors and entrepreneurs given it cuts across and supports many other industries and plays a key role in helping to fuel UK economic growth. The UK government continues to show its commitment to the tech industry, with targeted funding in areas such as artificial intelligence, support for startups and scale ups, creative tax reliefs to encourage investment, as well as being a key growth-driving sector in the UK’s modern industrial strategy.”
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