East of England bucks national trend with rise in new tech companies

RSM’s analysis shows across the UK a total of 12,184 new tech companies were incorporated in Q1 2025, a 12 per cent fall on the same quarter last year (13,801). It’s expected that tariff disruptions and global economic uncertainty may further hinder future growth of the UK’s technology sector.

The number of incorporations in the East of England rose 17 per cent from 852 in Q4 2024 to 993 in Q1 2025, outpacing overall growth in the UK, which increased 10 per cent from 11,031 to 12,184 in the same period.

Laragh Jeanroy, office managing partner in Cambridge at RSM UK, said: “It’s encouraging to see that despite the national slowdown in new tech incorporations, the East of England is bucking the trend. This is down to the strength of research and academic institutions to which the region is home, along with access to funding for startups and a supportive ecosystem including serial entrepreneurs, angel investors and venture capitalists, which early-stage tech businesses depend on to thrive.”

Ben Bilsland, partner and head of technology industry at RSM UK, added: “Global economic uncertainty has taken hold in the UK’s tech sector, with business leaders being increasingly cautious about making investment and recruitment decisions.

“Generally, UK tech incorporation numbers seem strong but the concern is that this sustained stagnation of new companies will reduce the size of the UK’s tech sector over time. With global economic uncertainty likely to continue, it would be helpful to see initiatives from the Government that can help - including facilitating skilled inbound immigration, direct funding for innovation and tax relief for investment and research.”