Tech firms see UK as most attractive market to grow – but for how long?

Three in five firms would pick UK over Europe, APAC and US for tech investments, Barclays report finds
Tech companies saw cash flows and savings rise, overdrafts reduce
Further government support is needed for long-term support

New research from Barclays has claimed tech firms are increasingly seeing the UK as an attractive place to invest, with 62% of tech leaders favoring the UK over Europe and nearly as many favoring the UK over APAC (61%) and the US (60%).

A strong customer base, skilled workers with a diverse talent pool and fast consumer adoption of tech were cited as key influencers behind the UK’s potential success.

Three in four also noted the UK’s economic climate supports growth (76%) and that its political landscape will help over the next three years (75%).

Tech firms are investing in the UK

Half of the 500 UK-based technology leaders surveyed said they now plan to increase AI investments by 20% over the next 12 months with almost all of them (95%) reporting increasing client demand for AI products and services.

Thanks to the healthy landscape in the UK, 70% of the tech firms surveyed plan to increase capex by an average of 8.9% this year.

Separate Barclays data found that tech business cash flows rose by 1.7% between Q1 2024 and Q1 2025, and the tech sector had the higher increase in savings account balances, up 21.5%. Overdraft usage also fell 26.2% despite borrowing remaining relatively flat, suggesting increased financial health.

“There’s a clear sense that the UK is holding its own on the global tech stage, with founders and leaders increasingly seeing the UK as one of the best places in the world to grow and scale,” Head of Technology, Media & Telecoms & Innovation Banking Helena Sans commented.

Looking ahead, 72% agree that government backing is essential to long-term growth. This includes specialized funding programs (44%), support to attract international investors (37%), enhanced tax incentives for equity investments (36%) and startup and SME grants (36%).