The UK saw a record number of tech incorporations in 2025, with the number of new firms founded soaring by almost 50% in the past five years.
New analysis from consulting firm RSM UK has found there were 56,615 new tech incorporations last year, a 17% rise from the previous year and 47% greater than five years ago.
This growth was distributed across almost every region in the UK, with the biggest year-on-year rises seen in Wales and the West Midlands.
Only the South East did not increase the number of tech incorporations last year, which has been put down to a skills shortage in the region by RSM UK.
“The record number of new tech incorporations in 2025 is a clear sign of the strength and underlying confidence in UK tech,” said RSM UK director Georgie Bole.
“Despite consumer and business confidence being hit by constant waves of uncertainty last year, this does not appear to have filtered through to the UK’s technology industry, which continues to make strides as a global leader in tech.”
Bole noted that the tech industry has become an attractive choice for investors due to its ability to cut across and support a large variety of other sectors and acting as a driving force behind UK economic growth.
“However, one area that UK is falling short on is attracting and retaining the right skills and talent in tech. Failure to address this could hinder UK tech advancement,” Bole added.
“This needs to start with removing barriers to overseas recruitment as well as incentivising tech graduates from UK universities to remain in the UK, so our tech businesses benefit from the skills, knowledge and ideas needed to scale up.”