The UK registered 19,545 new technology companies in the third quarter of 2026, a record, according to analysis from RSM UK. That is 26% up on the 15,470 incorporated in the same quarter last year and 3% above the 18,997 recorded in the second quarter.
London remained the largest hub with 9,604 new companies, 49% of the UK total, though that was flat on the second quarter. Almost every region grew year on year. Scotland rose 52% to 715, the North East 44% to 297, Northern Ireland 44% to 187 and the East of England 41% to 1,712. Wales was the exception, down 35% to 379 from 582, a fall RSM put down to unusually strong growth in the third quarter of 2025. Quarter on quarter, the North West gained 16% to 1,479, Wales 12%, Yorkshire and The Humber 11% and the South West 10%.
Ben Bilsland, partner and head of technology industry at RSM UK, said: “A third consecutive record quarter in tech incorporations shows entrepreneurial confidence in UK tech is remarkably resilient.” He pointed to growth beyond London, with strong progress across Scotland, the East of England and the North East.
The wider funding picture supports that confidence. UK startups raised $17bn in the first half of 2026, the strongest opening half since 2022, with AI taking the majority of the capital. Bilsland cautioned that headline figures are not the same as easy access to finance: investment is concentrated in AI and larger late-stage rounds, while borrowing costs remain restrictive for young businesses.
He expects a tougher year ahead, with above-target inflation and higher energy and technology input costs squeezing margins. On the Budget, he argued that raising the tax burden through changes to capital gains tax would discourage entrepreneurship and risk making the UK less competitive.
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