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% of UK tech leaders view their home market as a better place to grow and scale a business than mainland Europe, with 61% preferring the UK to Asia-Pacific and 60% favouring it over the US. Executives cited strong domestic market opportunities, access to a diverse talent pool, and faster consumer adoption of new technologies as key advantages for the UK compared to other global hubs.
The findings come amid surging demand for artificial intelligence. Barclays found that 95% 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% over the next year. Confidence in the wider economy is also supporting growth plans. More than three-quarters of tech firms (76%) said the UK macroeconomic climate was providing a boost, while 75% believed the political landscape would support growth over the next three years.
Barclays’ anonymised client data pointed to stronger financial foundations across the sector. Cash inflows rose 1.7% in the first quarter of 2025 compared with a year earlier, while savings account balances climbed 21.5% as companies held onto cash for future growth. Overdraft usage fell by more than a quarter, suggesting firms were moving away from short-term borrowing and focusing on longer-term planning.
Despite the optimism, tech firms highlighted persistent obstacles to investment. The biggest concerns were high fundraising costs (40%), heavy regulatory compliance requirements (36%), and limited government funding and grants (33%). A large majority (72%) said stronger government backing was crucial to sustaining growth. Tech leaders called for more targeted support, including specialist funding programmes (44%), measures to attract overseas investors (37%), enhanced tax incentives for equity investment (36%), and additional grants for start-ups and smaller firms (36%).
Helena Sans, Head of Technology, Media & Telecoms & Innovation Banking at Barclays UK Corporate Bank, said the research showed Britain “holding its own on the global tech stage.” “To keep up this momentum, we’ve got to break down the remaining roadblocks – including access to funding, attracting global investors, and building a stronger appetite for risk,” she said. “That’s why we recently launched our Innovation Banking team and a bespoke £250m Growth Lending Fund to give fast-growing tech businesses the capital they need to scale.”
Barclays has also committed £22 billion through its Business Prosperity Fund, designed to provide lending, refinancing, and tailored support for innovative companies at every stage of their growth. With AI adoption accelerating and confidence in the UK’s role as a global tech hub on the rise, the research suggests Britain’s technology sector is positioning itself for a decisive period of expansion – provided investment barriers can be addressed.
