The number of tech companies incorporated in the UK increased by 22% last year, according to recent data.
According to Companies House data analysed by accounting firm RSM UK, 46,474 tech companies were incorporated in the UK in 2022, compared to 38,240 the year before.
The figures from 2022 are almost double that of 2020, which had 23,531 tech incorporations, suggesting solid year-on-year growth since the pandemic.
RSM UK’s data also suggested good news for the levelling up agenda, as the number of tech incorporations increased across all regions in the UK, with eight seeing an increase on or above 22%.
While London unsurprisingly had the most 2022 tech incorporations, the East Midlands had the largest percentage increase (38%) over the period, followed by Yorkshire and The Humber (30%) and the North West (29%).
“Despite the obvious economic challenges, it’s been another strong year for the tech industry. Whilst it is no surprise to see London at the centre of new tech incorporations, growth across all regions outside the capital is further evidence of the UK’s thriving tech industry,” said Ben Bilsland, a partner and tech analyst at RSM UK.
“This crop of early-stage businesses will need support to scale. Access to funding will be crucial and the UK government will need to ensure that UK tech is an attractive place for both domestic and overseas investment.”
Bilsland pointed to R&D tax incentives as a crucial policy to maintain and encourage further growth in the UK tech sector. Despite the R&D tax credit programme being widely supported by the industry, Chancellor Jeremy Hunt announced cuts in the last Autumn Statement, leading to criticism.