South still dominant when it comes to tech firms

But latest KPMG figures reveal that the Midlands and the North have seen the fastest increase in new tech start-ups in the past year

Reading is the tech capital of the UK, with more than one in five tech firms (22 per cent) located there, KPMG figures have revealed.

According to its Tech Monitor UK Survey, the number of tech-related enterprises in the UK private sector has risen by 31 per cent since 2010, which represents net gain of around 45,000 enterprises over the past five years, or one new tech company every hour of the day since 2010.

Wokingham came in a close second to Reading, with 21 per cent of tech firms ‘clustered’ there, and Slough was in third place with 19 per cent. Hounslow was close behind with 18 per cent and Milton Keynes bringing up the rear with 17 per cent. The survey also revealed that regions across the UK are generating growth through the tech sector.

Clusters in the UK are moving towards specialisation in a particular area of tech, for example South Cambridgeshire has become a world renowned biotech centre, and the City of London is home to a successful financial tech community.

However, when the survey turned to the number of new firms popping up, the geographical area has started to expand further north.

Warwick topped the charts in terms of the fastest increase in tech sector companies, with a 28 per cent spike, closely followed by Hackney with 25 per cent. However in third place was Rotherham with 21 per cent, North Lanarkshire with 20 per cent and North Tyneside with 20 per cent.

Tudor Aw, partner and head of KPMG’s technology sector, said: “It is important for the UK to have a strong tech sector and it is therefore hugely encouraging to see that not only has the UK Tech sector delivered six years of continued growth, but that this has happened throughout the country with some 63 local authorities experiencing double digit growth in the last year alone.

“We are also seeing increased specialisation within local technology clusters such as Biotech in South Cambridgeshire, AutoTech in the West Midlands and FinTech in London. This creation of tech centres of excellence will create a virtuous circle of attracting global investment and acting as a magnet to the best tech talent."

He added: “Although we have seen the number of Tech enterprises grow by a third since 2010, double that of other private enterprises, we can’t take this for granted and it is important we see the tech sector be prioritised by national and local government and also focus on key issues such as STEM subject education, investment in regional infrastructure including broadband and an adequate regulatory framework.”