Barclays: UK Named Leading Choice for Tech Industry Growth
The Barclays Business Prosperity Index finds that UK-based companies overwhelmingly favour the domestic market as their core arena for growth.
Benefiting from a robust customer base and abundant market opportunities, the UK stands out as a prime destination for tech-driven firms aiming to upscale their operations.
According to the report, newcomers to the UK market cite two standout advantages compared to regions like the US, APAC and mainland Europe: exceptional access to a diverse, skilled talent pool and a notably rapid pace in adopting technology products.
Demand for AI remains particularly strong. It finds that 95% of respondents report increasing appetite for AI goods and services within the UK, with half of the tech businesses surveyed planning to up their AI product investment by at least 20% in the coming year.
Forward momentum in AI expenditure shows no sign of slowing, supporting forecasts that UK spending on AI solutions could reach £1.8bn (US$2.43bn).
The index also reveals that 76% of respondents report the country’s current macroeconomic climate is boosting their business.
However, there remain clear calls for action, with 37% urging the government to do more to attract international investment.
Nearly half of businesses highlight the need for greater support to expand tech operations nationwide.
Helena Sans, Head of Technology, Media & Telecoms & Innovation Banking at Barclays UK Corporate Bank, says: “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 (US$338m) Growth Lending Fund, designed to support fast-growing tech businesses with the capital they need to scale confidently.”
The index emphasises a rising demand for specialised funding, positioning the Growth Lending Fund as a direct response.
- Overall cash balances in current accounts declined by 9.6% while cash inflows into technology businesses rose by 1.7%
- The tech sector had the highest increase in savings account balances, up 21.5%
- Overdraft usage fell by 26.2%, despite borrowing remaining relatively flat over the same timeframe
The single largest obstacle to securing funding for UK tech businesses is the high cost associated with the fundraising process, with 40% of leaders citing this as their main challenge.
Other substantial barriers include excessive compliance fees, complex regulatory requirements (highlighted by 36% of respondents), and limited government funding or grant opportunities, which 33% of leaders identified as a significant constraint.
Sheetal Shinh, Head of Innovation Banking at Barclays Business Banking, says: “Access to finance is a key issue for tech businesses looking to scale.
“At Barclays, we’re backing these ambitions through our £22bn (US$29.7) 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.”
The fund is available for new and existing Barclay Business customers and UK Corporate Banking clients.
