A record number of new UK technology companies were incorporated throughout the North West in 2025, highlighting underlying confidence in the sector despite headwinds, according to leading audit, tax and consulting firm RSM UK.
RSM’s analysis shows there were 4,385 new tech incorporations in the North West in 2025, up 24% from 3,528 the previous year.
Darren Griffin, head of technology for RSM in the North West, said:
“This is fantastic news to start the new year with, and demonstrates a vote of confidence in the North West as a great location for tech start-ups. With the sector showing such strong growth, it’s now more important than ever that our region’s tech companies can access the right funding and support to navigate current challenges around attracting skills and talent, to ensure the North West can build a tech ecosystem that’s fit for the future. A great example of this is the Local Innovation Partnership Fund (LIPF), with £30m earmarked to support collaboration for tech-driven projects. This includes companies working in advancing AI and emerging technologies in the Liverpool City Region (LCR). Access to such funding is key to accelerating commercialisation, strengthening R&D infrastructure, and driving inclusive innovation across the region.”
Nationally, there were 56,615 new incorporations last year, up 17% from 48,518 in 2024, and increasing 47% compared to five years ago (38,421).
Despite ongoing economic uncertainty throughout 2025, tech business leaders remain optimistic. RSM’s Technology Industry Outlook found over three-quarters (76%) said they feel confident their technology business will grow under the current government.
Georgie Bole, director at RSM UK, said:
“The record number of new tech incorporations in 2025 is a clear sign of the strength and underlying confidence in UK tech. Despite consumer and business confidence being hit by constant waves of uncertainty last year, this doesn’t appear to have filtered through to the UK’s technology industry, which continues to make strides as a global leader in tech.
“The tech industry is highly attractive to investors and entrepreneurs given it cuts across and supports many other industries and plays a key role in helping to fuel UK economic growth. The UK government continues to show its commitment to the tech industry, with targeted funding in areas such as artificial intelligence, support for startups and scale ups, creative tax reliefs to encourage investment, as well as being a key growth-driving sector in the UK’s modern industrial strategy.
“However, one area that UK is falling short on is attracting and retaining the right skills and talent in tech. Failure to address this could hinder UK tech advancement. This needs to start with removing barriers to overseas recruitment as well as incentivising tech graduates from UK universities to remain in the UK, so our tech businesses benefit from the skills, knowledge and ideas needed to scale up.”
