UK tech at risk of falling behind as skilled tech migration drops 10% year-on-year and 30% since 2022
Despite the first ever UK-US tech agreement, the UK is still at risk of falling further behind tech giants such as the US and China if it does not prioritise attracting overseas talent to the sector, warns leading audit, tax and consulting firm RSM UK. This comes as the number of skilled migrants applying to work in UK tech companies dropped 10% last year.
A freedom of information request to UK Visas and Immigration submitted by RSM shows the number of international workers applying for a visa to work in UK tech fell by 10% from 41,661 in 2023 to 37,381 in 2024 and reflects a 30% decline since 2022 when applications peaked at 53,729.
James Bull, technology industry senior analyst at RSM UK, said: “While the latest UK-US tech agreement marks a major milestone for the country, it’s important that attracting and retaining overseas talent isn’t overlooked. Another drop in tech migrants applying to work in the UK could mean we’re still at risk of falling further behind the US and China’s thriving tech industries and the global AI race.
“To ensure UK tech businesses can continue to build on the momentum already established, they need the brightest minds, including a mix of homegrown talent and from overseas. Healthy immigration gives UK tech access to innovative ideas and skills and supports a diverse workforce, which is vital for the UK to stand a chance of becoming a world leader in tech. Without removing some of the existing barriers for overseas talent, there’s a real risk that tech businesses of the future will be developed outside of the UK.
“Changes to immigration policy in the UK over the past 18 months have not helped. The minimum salary for a skilled worker visa has risen from £26,200 in 2023 to £38,700 in April 2024, and to £41,700 as of July 2025, and discounts eligible for around one in three roles historically have been scaled back. While many senior tech roles fall above these thresholds, junior and mid-level roles in fast growing tech businesses, particularly outside of London, and in specialist areas like AI, cyber security and data science, have been impacted by the policy changes.”
RSM’s latest analysis also found the number of new UK technology incorporations reached 14,262 in Q2 2025, a record high, and up 16% from 12,318 in the same period last year.
“While it’s encouraging to see tech leaders pressing ahead with their plans despite the challenging economic climate, they may find a lack of talent with the right skillset acts as a roadblock to scaling their business. Investing in and training home-grown talent is key, but this alone won’t be enough. The UK’s labour market is stabilising but remains tight, and skills shortages remain a real issue in the sector, emphasising the need to draw on talent outside the UK.”