The number of new technology businesses set up in the East of England rose by 46 per cent in 2017 according to new analysis by RSM.
In total, there were 660 software development and programming businesses incorporated in the East of England region in 2017, up from 452 in 2016. Nationally, there were 10,016 technology businesses set up in 2017, with year-on-year rises recorded in every region in the UK. The figures validate the Chancellor’s recent claim during the Spring Statement speech that a new tech firm is set up in the UK every hour.
Laragh Jeanroy, office managing partner at RSM East Anglia said: “These figures show very clearly that despite the fears of a post-referendum slowdown, the region’s tech sector is incredibly vibrant and growing at a remarkable rate.
“There are a number of reasons for this. The region’s universities are playing a key role in developing and nurturing exceptional talent and the Silicon Fens particularly are continuing to attract the world’s brightest and best.
“Entrepreneurs are able to gain good access to finance, either through traditional sources of debt at relatively cheap rates, or from venture capitalists and private equity funds.
“The UK’s tax regime is also proving to be an incredibly powerful tool in encouraging tech businesses, who take advantage of legitimate tax saving and incentive programmes. These include the Enterprise Investment Scheme, Research & Development tax credits, video games tax relief and the Patent Box regime.
“There is undoubtedly the political will to build momentum and generate further growth as part of the government’s overall industrial strategy.
“However, there are some clouds on the horizon. While many in the sector will be cheered by the news that EU nationals will continue to be able to come and work in the UK during the transition period, the longer term position is as yet unclear.
“As interest rates starts to rise, we may also see a shift away from venture capital and private equity as investors seek returns from safer investments. For now though, the funding environment is incredibly benign.”