New statistics show how the North East could become the next tech hotspot

According to new research from RSM, the number of new tech companies set up in the region rose by over 70 per cent in 2017.

In total, there were 173 software development and programming businesses incorporated in the North East region in 2017, a 78 per cent increase on the 97 companies set up in 2016.

Nationally, there were 10,016 technology businesses incorporated in 2017, with year-on-year rises recorded in every region in the UK.

Commenting on the figures, Richard Urron, head of the technology sector group at RSM in Newcastle, said: “These figures show very clearly that despite the fears of a post-referendum slowdown, the region’s tech sector is growing at a healthy rate.

“There are a number of reasons for this. The country as a whole is continuing to attract the world’s brightest and best technology businesses.

“On a more local level, the region’s universities are playing a key role in developing and nurturing exceptional talent and this, together with the development of innovative and collaborative working spaces, is encouraging a very active tech community.”

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.

Richard added: “Entrepreneurs are able to gain good access to finance, either through traditional sources of debt at relatively cheap rates; local fund managers; or 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.

“There is the political will to build momentum and generate further growth as part of the government’s overall industrial strategy and with the current funding environment being incredibly benign, the outlook for the tech sector seems to be positive.”