The number of new technology companies incorporated in the first quarter of 2026 surged to a record high despite geopolitical tensions and uncertainty, according to audit, tax and consulting firm RSM UK.
RSM’s analysis shows there were 16,887 new tech incorporations in Q1 2026, up 39% from 12,184 the same quarter last year, and increasing 15% from 14,699 in Q4 2025.
Scotland saw the biggest rise for Q1, with 687 tech companies incorporated for the period marking a 37% increase compared to Q4 of 2025. Only two regions saw a quarter-on-quarter decrease – Yorkshire and the Humber with -8% and Wales with -7%.
Despite this, all UK regions were up on the previous year, with London accounting for the highest number of new tech incorporations at 8,236 – up 19% year-on-year. The South East placed second with 1,759, and the East of England came third with 1,331.
“The UK’s tech industry continues to show promising growth despite current geopolitical uncertainty, while other sectors pull back on investment,” says Ben Bilsland, partner and head of technology industry at RSM UK.
“For tech entrepreneurs, the UK is viewed as a stable place to invest and grow, which is crucial in the current volatile environment. The UK’s proven track record in the tech space and thriving tech ecosystems, have helped to solidify its position as best in the world to do business.”
While the figures are promising – challenges remain for UK tech. Bilsland says slow planning regulation, skills shortages and high energy costs will act as barriers against transformational growth.
He notes US tech companies have started to stall on promises to invest in the UK and says if this trend continues, a reduction of overseas capital into the tech industry will hinder growth.
“With further headwinds looming, UK tech leaders need to closely monitor the broader economic environment – particularly if they’re exposed to supply chain disruptions and volatile energy costs,” adds Bilsland. “Tech companies that are best placed to ride the storm will be those with strong energy resilience, flexible supply networks and disciplined capital allocation.”
