UK tech bounces back as new incorporations jump to record high in Q2 2025
The number of new UK technology incorporations jumped to a record high in Q2 2025, as businesses adapt to a world of uncertainty, according to leading audit, tax and consulting firm RSM UK.
RSM’s analysis found a total of 14,262 new tech companies were incorporated in Q2 2025, jumping 16% from 12,318 in the same period last year. The number of tech incorporations also rose by 17% quarter-on-quarter from 12,184 in Q1 2025.
All UK regions were up on last year, with nine out of the 12 regions recording the highest number of new tech incorporations since 2019.
Ben Bilsland, Partner and Head of Technology industry at RSM UK, said: “This surprising jump in new tech incorporations to a record high suggests that, despite the numerous headwinds, tech entrepreneurs and leaders are getting used to dealing with an uncertain world. We’ve seen tech growth cool down over the last year, as businesses and investors delayed big decisions. It’s clear they’ve realised the uncertainty isn’t going away anytime soon, and may be the new norm, so it’s time to press ahead.
“Following very little for UK tech in the Autumn Budget, the government provided more detail on its Industrial Strategy and Digital and Technologies Sector Plan for tech in 2025. This added clarity will have been a boost to the sector, but significant investment is needed, and if economic uncertainty escalates, this will act as a roadblock to future tech growth.
“Increasing pressure on the UK government to address gaps in the budget will leave the tech industry feeling nervous about what tax measures might be introduced. Changes to capital gains tax will make business founders and investors cautious, with a direct impact on investment and exit decisions. Any changes around the research and development scheme would likely send shockwaves through the tech industry, stifling innovation and growth.
“If income tax is raised, a greater tax burden on higher earners could also exacerbate workforce issues in the tech industry. Skilled workers are in high demand, and increased taxes in the UK might make the extremely competitive salaries available overseas even more appealing.
“UK tech faces fierce competition on all fronts from other countries. The government will need to tread carefully to ensure the UK remains one of the best places in the world to start and grow a tech company, as the exit of our brightest businesses and talent overseas could cause long-lasting harm to the economy.”