Research with 500 technology business leaders shows the UK remains a preferred hub for growth. 62% consider it more attractive than mainland Europe, 61% prefer it to Asia-Pacific, and 60% rank it above the United States. Respondents cited the UK’s market opportunities, skilled and diverse talent pool, and rapid consumer adoption of new technologies as key advantages.
Confidence is also reflected in investment plans. Half of tech firms intend to increase AI spending by at least 20% over the next year, with 95% reporting growing client demand for AI products and services. More broadly, 70% expect to raise overall investment this year, averaging an 8.9% increase. Barclays’ data supports this trend: cash inflows rose 1.7% year-on-year in Q1 2025, savings balances jumped 21.5%, and overdraft usage dropped by 26.2%, signalling stronger liquidity and greater confidence in long-term planning.
The sector also remains outward-looking, with 95% of leaders engaged in exports. However, barriers to funding persist. High fundraising costs (40%), regulatory burdens (36%), and limited Government support (33%) were cited as key challenges.
72% of firms say Government backing is essential to maintaining their position as global leaders. Priorities include targeted funding for tech businesses (44%), more substantial support to attract international investors (37%), and improved tax incentives or grants for start-ups (36% each).
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