Tech sector defies economic uncertainty as new incorporations jump 36% year-on-year
The number of new UK technology incorporations soared to another record high in Q3 2025, as the sector defies ongoing economic uncertainty, according to leading audit, tax and consulting firm RSM UK.
RSM’s analysis found a total of 15,470 new tech companies were incorporated in Q3 2025, jumping 36% from 11,368 in the same quarter last year. The number of tech incorporations also rose by 8% compared to Q2 this year, up from 14,262.
All UK regions saw an increase in tech incorporations compared to last year, with London, the East of England, North West, South West, Wales and West Midlands recording the highest quarter since 2019.
Ben Bilsland, partner and head of technology industry at RSM UK, said: “UK tech is showing resilience, with quarterly tech incorporations reaching another record high despite broader business confidence remaining subdued. The continued momentum in the UK’s booming tech ecosystem of high growth, successful companies will further reinforce the country’s position as a global leader in tech.
“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. This deal pointed to deep investment in AI, civil nuclear energy, quantum technologies and further frontier innovations. Leading US tech companies made multi-billion figure promises of investment into the UK as their CEO’s praised the UK’s tech ecosystem.
“Looking ahead, the government must address roadblocks to ensure growth of these tech companies isn’t stifled. Funding is crucial, alongside access to the right talent and skills, and a regulatory environment that balances innovation with protection. 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.”