Barclays: UK Named as Preferred Hub for Tech Growth
The Barclays Business Prosperity Index reveals that most UK-based businesses prefer their home turf for growth.
Offering a strong customer base and market opportunities, the UK is an attractive destination for businesses looking to scale tech capabilities.
The report says that for firms looking to enter the UK market, two other features also stand out over the US, APAC and mainland Europe: a strong and diverse talent pool and faster-growing adoption of technology products.
95% of respondents also report that there is increasing consumer demand for AI products and services in the UK. Half of tech businesses are planning to increase investment in AI products by a minimum of 20% in the next year.
Growth in AI investment is projected to continue climbing after other reports have predicted a rise in UK spend on AI products to the tune of £1.8bn (US$2.43bn).
The Barclays report also lists that 76% of businesses have been given a boost by the macroeconomic climate in the UK.
Respondents have called for further support, with 37% calling on the government to increase support for attracting international investors.
Specialised funding support has been highlighted, as just under half of participants are also calling for an increase in tech operations in the UK.
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 report highlights a growing need for specialised funding and introduces the Growth Lending Fund as a response to this.
- 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 biggest barrier to funding sources and investment was listed as the high costs associated with fundraising processes.
Other barriers to UK tech growth and innovation include excessive compliance fees, regulatory requirements and limited government funding.
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.
