Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the increase in technology company incorporations in the UK in 2025; and what impact that increase is having on their policies for regional economic development and tech entrepreneurship.

This Government welcomes the increase in technology company incorporations in the UK in 2025, which reflects the strength of the UK’s tech ecosystem and growing levels of tech entrepreneurship across the country. We are encouraged that new tech businesses are being founded across UK regions and cities, supporting local growth, attracting investment, and helping to build strong regional tech and innovation clusters beyond London. And we are committed to removing barriers to growth for startups across the UK – ensuring the UK is one of the best places for tech companies to start, scale and stay.

We are supporting regional economic development through measures such as the Regional Tech Booster, a programme supporting startups and accelerating tech clusters beyond London. Partnerships across the UK have bid for up to £20 million through our Local Innovation Partnerships Fund - a new £500 million UKRI-led programme to grow regional strengths including those in the digital and technology sector.

We are supporting tech entrepreneurship and the sector through venture capital schemes, R&D tax reliefs, targeted visa routes, the AI Opportunities Action Plan, and by streamlining regulation to support innovation. We are investing in skills, compute, and designated AI Growth Zones; on R&D, we are committing £38.6 billion to UKRI over five years; and powering entrepreneurship through the Entrepreneurship Prospectus, Enterprise Fellowships, and Innovate UK’s £130 million Growth Catalyst.

We are also unlocking finance via pension and capital‑markets reforms, while the British Business Bank increases annual investment to £2.5bn and commits £5bn to growth‑stage funds.

Together, these measures set out a comprehensive, long‑term plan, backed by record funding, to support tech entrepreneurship and drive economic growth across all regions of the UK.