The number of new UK technology companies incorporated increased by almost 50 per cent in 2025 compared to five years ago, according to new figures from consulting firm RSM UK.

Last year there were 56,615 new tech incorporations in 2025, up 17 per cent from 48,518 the previous year, while 38,421 technology companies were incorporated five years ago.

RSM UK said nearly all regions saw a record number of tech companies incorporated last year.
Businesses in Wales took the top spot, rising by 79 per cent last year, while tech incorporations in the West Midlands jumped by 27 per cent.

RSM UK said that the figures highlight the underlying confidence in the sector despite headwinds.

However, the South East of England was the only place not to hit record numbers for tech incorporations, with figures rising by just 11 per cent in London and 15 per cent in the region as a whole.

RSM UK said that this is likely due to skills shortages which have been holding back growth.

Georgie Bole, director at RSM UK, added that failure to attract and retain the right tech talent in the UK could hinder tech advancement.

He called on the government to remove barriers to overseas recruitment and incentivise tech graduates from UK universities to remain in the UK so that tech businesses can benefit from the skills, knowledge and ideas needed to scale up.

Even though there was ongoing economic uncertainty throughout 2025, the RSM UK said that tech business leaders remain optimistic.

According to its research, some 76 per cent of technology leaders said they feel confident their technology business will grow under the current government.

“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,” said Bole. “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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