UK tech sector continues to grow despite Covid-19 disruption, study reveals
The UK tech sector has continued to grow despite the impact of Covid-19 and lockdown restrictions, a major study has revealed.
The data – shared by Companies House this month – shows how the coronavirus pandemic has helped carve out a bigger slice of the economy for tech businesses.
According to the figures, some 14,301 technology-focused businesses incorporated in the UK in 2020 – representing a 13 per cent increase compared to the 12,696 start-ups registered in 2019.
It will come as no surprise that London was the number one destination for establishing a technology business, recording 7,480 incorporations over the 12-month period.
The South East of England followed, recording 1,520 new tech start-ups, while the North West placed third, recording 888 new incorporations.
Regionally, however, it was the West Midlands that recorded the largest percentage increase. According to the data, cities such as Birmingham, Coventry and Wolverhampton recorded 821 new incorporations – representing a 40 per cent year-on-year increase.
Scotland, Northern Ireland, the North East, the East Midlands, and the East of England all also saw annual growth in incorporations.
The figures come after the publication of the latest Tech Nation report, which revealed that the UK attracted over $15 billion (£10.8 billion) in investment in 2020 and placed third internationally for tech incubations ahead of all of Europe and behind only the US and China.
Commenting on the figures, Digital Secretary Oliver Dowden said: “With record levels of investment secured and UK listings gaining momentum, this report shows Britain’s tech sector continues to go from strength to strength, solidifying our position as one of the world’s top tech hubs.
“We want to bring about a golden age of UK tech through a raft of supportive measures and funding to help businesses thrive. This will help fuel a booming tech sector – creating jobs and improving services so that we can build back better from the pandemic.”
For help and advice with related matters, please get in touch with our expert company formation team today.