The UK’s technology sector has achieved a new milestone, with the number of newly incorporated tech firms hitting record levels for the second consecutive quarter. Fresh analysis by RSM UK revealed that 15,470 new tech companies were launched in the third quarter of 2025, representing a 36% increase compared with the same period last year and an 8% rise on the previous quarter — which itself had already set a record.
Growth was widespread across the UK, with every region reporting an increase in new tech incorporations compared to 2024. London, the East of England, the North West, the South West, Wales, and the West Midlands all recorded their strongest quarters since 2019, underscoring the national reach of the country’s growing digital economy.
According to RSM UK’s head of technology industry, Ben Bilsland, this surge reflects growing optimism in the sector. He noted that further expansion could be on the horizon in the fourth quarter, buoyed by recent government initiatives and international agreements. “Q4 may see further growth in the wake of positive messaging from the UK government on the tech sector and the US–UK Tech Prosperity Deal announced during the US President’s recent visit,” Bilsland said.
The US–UK Tech Prosperity Deal is expected to channel deep investment into advanced areas such as artificial intelligence, quantum computing, civil nuclear energy, and other frontier technologies. Several major American tech companies have already pledged multi-billion-pound investments in the UK, with their CEOs highlighting the country’s dynamic innovation landscape and talent base.
Bilsland described the pace of UK startup creation as remarkable but cautioned that sustaining this growth would depend on overcoming several persistent challenges. “Funding is crucial, alongside access to the right talent and skills, and a regulatory environment that balances innovation with protection,” he explained.
He also pointed to the upcoming Autumn Budget as a pivotal moment for the sector’s future, calling on the government to maintain its support for innovation and enterprise. “As we approach the Autumn Budget, all eyes will be on the Chancellor to unveil growth-friendly tax incentives for businesses and to protect the R&D tax scheme, which is a crucial pillar to support innovation and development,” Bilsland added.
The recent boom in tech incorporations highlights both the strength and resilience of the UK’s digital economy. Despite broader economic challenges, including inflation and global supply chain disruptions, the appetite for technological innovation and entrepreneurship remains strong. Industry observers say the surge demonstrates not only confidence in the UK’s innovation ecosystem but also the country’s position as a major player in the global tech arena.
With momentum building and investor confidence high, the coming months will be crucial in determining whether this record-breaking trend continues into 2026.
