Barclays says Britain is seen as a major destination for technological growth
According to new research from Barclays, the UK is becoming one of the most attractive technology business destinations in the world, surpassing its competitors in the United States, Europe and Asia-Pacific.
The bank’s latest business boom index found that 62% of UK tech leaders view their domestic market as a better place to grow and expand their business than the continent, while 61% prefer the UK over the Asia-Pacific region, and 60% prefer it to the United States.
Executives believe that executives see strong domestic market opportunities, access to a diverse talent pool and faster consumer adoption of new technologies as key advantages for the UK compared to other global hubs.
These findings emerged amid the surge in demand for artificial intelligence. Barclays found that 95% of companies reported increased customer interest in AI-driven products and services, with half of them planning to increase their AI investment by at least 20% next year.
Confidence in the broader economy also supports growth plans. More than three quarters of tech companies (76%) say the UK’s macroeconomic climate is providing an increase, while 75% believe the political landscape will support growth over the next three years.
Barclays’ anonymous customer data points to the financial foundations of the industry as a whole. Cash inflows increased by 1.7% in the first quarter of 2025 compared to the same period last year, while savings account balances rose by 21.5% as the company held cash to boost future growth. Overdraft usage has dropped by more than a quarter, which suggests that companies are moving away from short-term lending and focusing on long-term planning.
Despite its optimism, technology companies highlight ongoing barriers to investment. The biggest concerns are high fundraising costs (40%), strict regulatory compliance requirements (36%), and limited government funding and grants (33%).
The vast majority (72%) say stronger government support is crucial to maintaining growth. Tech leaders call for more targeted support, including professional funding programs (44%) to attract overseas investors (37%), enhanced tax benefits for equity investments (36%), and additional grants for startups and smaller companies (36%).
Helena Sans, head of technology, media and telecommunications and innovation banking at Barclays UK Corporate Bank, said the study showed that the UK “has owned its own stake in the global technology stage”.
“To maintain this momentum, we must break the remaining barriers – including access to funding, attract global investors and build a stronger appetite for risk,” she said. “That’s why we recently launched the Innovation Banking team and a customized £250 million growth loan fund to enable fast-growing tech companies to provide the capital they need for the scale.”
Barclays has also committed £22 billion through its Business Boom Fund, aiming to lend, refinancing and tailor-made support to innovative companies at every stage of its growth.
With the accelerated adoption of AI and confidence in the UK’s role as a rising global technology hub, research shows that the UK’s technology sector is determining its own phase of expansion – as long as investment barriers can be addressed.
