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London tech firms turned over a combined £56bn in 2016

Investment and turnover in London’s tech and digital sector continued to boom according to new figures released by Tech City UK, which show a new tech company was formed every hour in 2016.

In its Tech Nation 2017 report, which is its latest survey of the UK’s tech sector, the organisation has found that both job creation and wage growth in the sector is outstripping the wider economy as it cements its position as one of the country’s key industries.

London in particular has continued to assert its preeminence, with London tech firms contributing a combined £56bn in turnover last year, marking a 106% rise in the last five years.

Companies in the capital also attracted £2.2bn investment from venture capitalists last year, dwarfing investment at European rivals including Amsterdam (£1.15bn) and Paris (£1.07bn) despite fears over the UK’s economic prospects in the wake of Brexit.

Gerard Grech, Chief Executive Officer of Tech City UK said the report shows that the country’s ‘tech innovation’ and ‘productivity’ were gathering momentum, with the wave of digital investment and job creation now being experienced in hubs right across the UK.

He said:“There are now significant tech hubs all over the UK, attracting both international investment and overseas talent.

“Tech careers now pay 44% more than the national average wage. These foundations will be crucial as we prepare to leave the EU. We need to maintain access to skilled workers while doubling down on home grown tech talent.

“And we need to think big. This report is all about working together on a common vision: the UK as a global leader in tech.”

Eileen Burbidge, Partner, Passion Capital & Chair: “Tremendous momentum and results have been achieved in and by the UK’s tech community in recent years but we must continue to ensure that we have the best possible ecosystem in place to help the sector achieve its full potential.

“In addition, we must also commit to ensure that our young people have the skills and aptitude needed for a career in this industry that is having an impact on every part of UK life.”