The number of new technology companies incorporated in the North West increased 29% in 2022, according to analysis of Companies House Data by leading audit, tax and consulting firm RSM UK. This is well above the national increase of 22%.* A total of 3,285 new tech businesses were incorporated in the North West last year, up from 2,549 in 2021.
Nick Wyatt, partner, RSM in the North West said:
‘It’s fantastic to see so many new tech company incorporations in the North West in 2022; the highest outside of London and the South East. This number, which has increased year on year since 2019, will not come as a surprise to many, after Manchester was recently named the fastest growing tech hub in the North of England by Greater Manchester Local Enterprise Partnership, based on funds raised. Manchester tech companies raised record funding levels of £532 in 2022, which represents a 50 per cent increase on 2021, and more than many major European cities including Rome, Brussels, Warsaw and Lisbon.’
‘The war on talent remains a challenge, as in other regions around the UK, but the North West offers an abundance of opportunities for developers, with innovation and entrepreneurial spirit key to its success.’
Nationally, 46,474 tech businesses were incorporated in 2022, up from 38,240 in 2021. The total number of incorporations in 2022 is nearly double the 23,531 companies in 2020, demonstrating sustained growth in new tech incorporations year-on-year.
The data cements tech as an area of huge growth across the UK. All regions in the UK saw an increase compared to 2021, with London being home to the highest number of tech incorporations (24,783). Eight of the ten regions in the UK saw increases on or above 22%.
Ben Bilsland, partner and Technology Industry Senior Analyst at RSM UK, said:
‘Despite the obvious economic challenges, it’s been another strong year for the tech industry. Whilst it is no surprise to see London at the centre of new tech incorporations, growth across all regions outside the capital is further evidence of the UK’s thriving tech industry. There is clearly appetite from entrepreneurs to start up new, innovative businesses and become part of the UK’s booming tech industry.
‘This crop of early-stage businesses will need support to scale. Access to funding will be crucial and the UK government will need to ensure that UK tech is an attractive place for both domestic and overseas investment. For many young innovative companies, R&D tax incentives are crucial cash inflows. For many, the recent changes to UK R&D schemes that reduced the amounts small companies can claim were not seen as a positive step towards supporting the early-stage ecosystem.
‘Innovation requires a world-class talent pool and UK tech will look to both education and immigration to build their workforces. Support from our universities and schools to build skills in STEM subjects and emergent areas such as Artificial Intelligence will be essential. Clarity over immigration policy will be required to ensure a healthy inflow of tech talent to fuel growing companies.’
Tech company incorporations by year
Region 2021 2022 % increase
East Midlands (England) 1,009 1,390 38%
East of England 2,306 2,881 25%
London 20,552 24,783 21%
North East (England) 513 645 26%
North West (England) 2,549 3,285 29%
Northern Ireland 335 393 17%
Scotland 1,124 1,367 22%
South East (England) 4,375 4,812 10%
South West (England) 1,627 2,075 28%
Wales 728 882 21%
West Midlands (England) 1,901 2,378 25%
Yorkshire and The Humber 1,221 1,583 30%
UK Total 38,240 46,474 22%