The number of new technology companies incorporated in the UK reached a record high in the first quarter of 2026, despite geopolitical tensions and tightening investment elsewhere, according to RSM UK. New tech incorporations outpaced the broader economy and confirmed the UK as a preferred base for founders looking for regulatory stability and deep talent pools.
The UK’s tech industry continues to show promising growth despite current geopolitical uncertainty, while other sectors pull back on investment. For tech entrepreneurs, the UK is viewed as a stable place to invest and grow, which is crucial in the current volatile environment. The UK’s proven track record in the tech space and thriving tech ecosystems, have helped to solidify its position as best in the world to do business.
Bilsland paired the positive headline figures with a set of warnings about the operating environment. Slow planning regulation, skills shortages and high energy costs are, he said, structural barriers that will hold back transformational growth. RSM also flagged that some US technology companies have begun to stall on previously announced UK investment commitments. If that pattern continues, a reduction of overseas capital into the sector will hinder growth.
With further headwinds looming, UK tech leaders need to closely monitor the broader economic environment, particularly if they're exposed to supply chain disruptions and volatile energy costs. Tech companies that are best placed to ride the storm will be those with strong energy resilience, flexible supply networks and disciplined capital allocation.
The report reads less as a celebration of Q1 than as a brief for boards: the formation figures are encouraging, but the firms being built will operate against a harder backdrop than the headline numbers imply.
