UK tech incorporations fell at the start of the year amid tariff disruptions and economic uncertainty, new figures have revealed.
Approximately 12,184 new tech companies were incorporated in Britain in the first quarter of 2025, 12% less than the same period the previous year according to analysis from tax and consulting firm RSM.
The drop off was seen across most regions in the UK, with the North East, London and Northern Ireland seeing the largest dips.
Only the East of England and Wales saw a higher number of incorporations compared with the first quarter of 2024.
Though the figures revealed a year-on-year decline, there are signs of recovery, with the first three months of the year seeing a 10% increase compared with the fourth quarter of last year.
The biggest quarterly regional surges were in the West Midlands, (16%), Yorkshire and the Humber (17%) and the East of England (17%).
“Despite new tech incorporations falling year-on-year, it’s encouraging to see some growth quarter-on-quarter, after declining for three consecutive quarters,” said Ben Bilsland, partner and head of the technology industry at RSM UK.
“Economic uncertainty has taken hold in the tech sector, with business leaders being increasingly cautious about making investment and recruitment decisions.”
Bilsland argued challenging economic policy from the US was in part to blame, with the Trump administration’s tariffs disturbing confidence in global supply chains.
“The technology industry has a big part to play in the government’s growth agenda, but it cannot do this without the necessary resources,” Bilsland added.
“What’s needed is urgent action from the government, including clarity around support and policies that cultivate growth.”
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