East of England region sees record high for new tech startups
RSM’s analysis found 1,135 new tech companies were incorporated in the region during Q2 - 21 per cent up from 941 in the same period last year, and 17 per cent ahead quarter-on-quarter from 971 in Q1 2025.
Across the UK, a total of 14,262 new tech companies were incorporated in Q2 2025, increasing 16 per cent from 12,318 in the same period last year. The number of tech incorporations also rose by 17 per cent from 12,184 in Q1 2025.
Only the East Midlands gained more tech startups in the UK than this region in percentage terms but started from a much lower base of new tech registrations - around just a third of the East of England figures. It means the East remains a key UK driver of new technology enterprises.
Laragh Jeanroy, office managing partner in Cambridge at RSM UK, said: “This jump in new tech incorporations to a record high shows growth in the region’s thriving tech ecosystem is firmly on the up again.
“Despite the numerous headwinds, tech entrepreneurs and leaders in the East of England are getting used to dealing with an uncertain world. It’s clear that businesses and investors have realised the uncertainty isn’t going away anytime soon, and may be the new norm, so it’s time to press ahead.”
Ben Bilsland, partner and head of technology industry at RSM UK, added: “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.”