UK seen as top destination for tech growth ahead of US, Europe and APAC, says Barclays

Sixty-two per cent of UK tech leaders prefer the UK over mainland Europe for growth, 61 per cent prefer it to Asia-Pacific and 60 per cent to the US. Executives cited strong domestic market opportunities, access to a diverse talent pool and faster consumer adoption of new technologies as key advantages. Ninety-five per cent of firms reported rising client appetite for AI, and half plan to increase AI investment by at least 20 per cent in the next year. Seventy-six per cent said the macroeconomic climate was boosting growth and 75 per cent expected political support. Barclays' anonymised client data showed cash inflows rose 1.7 per cent year-on-year in Q1 2025, savings balances climbed 21.5 per cent, and overdraft usage fell by more than a quarter, indicating stronger financial foundations and a shift away from short-term borrowing. Persistent investment obstacles include high fundraising costs (40 per cent), heavy regulatory compliance (36 per cent) and limited government funding and grants (33 per cent), with 72 per cent saying stronger government backing is crucial to sustain growth.

The UK is emerging as one of the world's most attractive destinations for technology businesses, outpacing rivals in the US, Europe and Asia-Pacific, according to new research from Barclays. The bank's latest Business Prosperity Index found that 62 per cent of UK tech leaders see their home market as a better place to grow and scale a business than mainland Europe, with 61 per cent preferring the UK to Asia-Pacific and 60 per cent favouring it over the US.

Barclays found that 95 per cent of firms reported rising client appetite for AI-powered products and services, with half of companies planning to boost AI investment by at least 20 per cent over the next year. Confidence in the wider economy is also supporting growth plans. More than three-quarters of tech firms (76 per cent) said the UK macroeconomic climate was providing a boost, while 75 per cent believed the political landscape would support growth over the next three years.

Read at Business Matters