A brand new research from the Barclays Enterprise Prosperity Index exhibits the UK is pulling forward as a hub for rising know-how companies. Out of 500 enterprise leaders surveyed, 62% mentioned the UK was a stronger place to develop in comparison with mainland Europe. One other 61% positioned it forward of the Asia-Pacific area and 60% forward of the US.
The principle causes given have been a stronger buyer base, sooner adoption of know-how merchandise and entry to a various pool of expertise. These have been seen because the clearest benefits in comparison with abroad markets. Barclays’ consumer information additionally confirmed money is being put aside, pointing to companies making ready for extra funding within the months forward.
Half of corporations mentioned they anticipate to lift their AI spending by at the very least 20% over the following 12 months. Barclays discovered that 95% are already seeing consumer demand for AI services and products. Different experiences additionally estimate UK spending on AI may attain £1.8bn.
How Are Tech Companies Viewing The Financial system?
Confidence within the economic system got here via strongly within the Barclays survey. 3/4 of leaders mentioned the political local weather will assist progress over the following 3 years. On the similar time, 76% reported that the present financial circumstances are already giving their enterprise a lift.
Barclays’ personal banking information provides extra element as inflows into tech accounts went up 1.7% within the first quarter of 2025 in comparison with this era in 2024. Financial savings balances climbed 21.5%, whereas overdraft use went down 26.2%. Present account balances did fall 9.6%, although this seems linked to companies putting extra cash into structured financial savings fairly than on a regular basis accounts.
With exports, Barclays reported that 95% of leaders surveyed have been lively in promoting to abroad markets throughout the identical interval.
What Is Slowing Down Funding?
The survey discovered that obstacles to progress are nonetheless impacting companies. 40% mentioned the price of fundraising is simply too excessive, 36% are impacted by regulatory necessities and compliance prices and 33% raised the shortage of presidency funding.
Leaders are calling for extra backing… Of these surveyed, 44% need customised funding programmes for know-how, 37% need stronger assist in attracting worldwide traders and 36% are asking for improved tax incentives on fairness funding. An additional 36% mentioned grants for startups and smaller companies would assist drive innovation.
Helena Sans, Head of Expertise, Media & Telecoms & Innovation Banking at Barclays UK Company Financial institution, mentioned: “There’s a transparent sense that the UK is holding its personal on the worldwide tech stage, with founders and leaders more and more seeing the UK as top-of-the-line locations on the earth to develop and scale.
“To maintain up this momentum, we’ve bought to interrupt down the remaining roadblocks – together with entry to funding, attracting international traders, and constructing a stronger urge for food for danger.
“That’s why at Barclays we just lately launched the Innovation Banking workforce together with a bespoke £250m Development Lending Fund, designed to assist fast-growing tech companies with the capital they should scale confidently.”
Sheetal Shinh, Head of Innovation Banking at Barclays Enterprise Banking mentioned: “Entry to finance is a key subject for tech companies seeking to scale. At Barclays, we’re backing these ambitions via our £22bn Enterprise Prosperity Fund and tailor-made assist for early-stage innovators. Whether or not it’s serving to founders navigate their first funding spherical or connecting them to specialist recommendation, our Innovation Banking groups are right here to unlock progress at each stage of the journey.”
