Are Tech Firms Choosing The UK Over The US And Europe?

A new study from the Barclays Business Prosperity Index shows the UK is pulling ahead as a hub for growing technology businesses. Out of 500 business leaders surveyed, 62% said the UK was a stronger place to grow compared to mainland Europe. Another 61% placed it ahead of the Asia-Pacific region and 60% ahead of the United States.

The main reasons given were a stronger customer base, faster adoption of technology products and access to a diverse pool of talent. These were seen as the clearest advantages when compared with overseas markets. Barclays’ client data also showed cash is being set aside, pointing to businesses preparing for more investment in the months ahead.

Half of companies said they expect to raise their AI spending by at least 20% over the next year. Barclays found that 95% are already seeing client demand for AI products and services. Other reports also estimate UK spending on AI could reach £1.8bn.

 

How Are Tech Businesses Viewing The Economy?

 

Confidence in the economy came through strongly in the Barclays survey. 3/4 of leaders said the political climate will support growth over the next 3 years. At the same time, 76% reported that the current economic conditions are already giving their business a boost.

Barclays’ own banking data adds more detail as inflows into tech accounts went up 1.7% in the first quarter of 2025 compared to this period in 2024. Savings balances climbed 21.5%, while overdraft use went down 26.2%. Current account balances did fall 9.6%, though this appears linked to businesses placing more cash into structured savings rather than everyday accounts.

With exports, Barclays reported that 95% of leaders surveyed were active in selling to overseas markets during the same period.

 

 

What Is Slowing Down Investment?

 

The survey found that barriers to growth are still impacting businesses. 40% said the cost of fundraising is too high, 36% are impacted by regulatory requirements and compliance costs and 33% raised the lack of government funding.

Leaders are calling for more backing… Of those surveyed, 44% want customised funding programmes for technology, 37% want stronger support in attracting international investors and 36% are asking for improved tax incentives on equity investment. A further 36% said grants for startups and smaller businesses would help drive innovation.

Helena Sans, Head of Technology, Media & Telecoms & Innovation Banking at Barclays UK Corporate Bank, said: “There’s a clear sense that the UK is holding its own on the global tech stage, with founders and leaders increasingly seeing the UK as one of the best places in the world to grow and scale.

“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.

“That’s why at Barclays we recently launched the Innovation Banking team along with a bespoke £250m Growth Lending Fund, designed to support fast-growing tech businesses with the capital they need to scale confidently.”

Sheetal Shinh, Head of Innovation Banking at Barclays Business Banking said: “Access to finance is a key issue for tech businesses looking to scale. At Barclays, we’re backing these ambitions through our £22bn Business Prosperity Fund and tailored support for early-stage innovators. Whether it’s helping founders navigate their first funding round or connecting them to specialist advice, our Innovation Banking teams are here to unlock growth at every stage of the journey.”